Tether, the issuer of the world’s largest stablecoin, USDT, has made another significant Bitcoin acquisition, purchasing 8,888 BTC worth approximately $735 million. The transaction, reported by Arkham, involved withdrawing Bitcoin from Bitfinex, a sister company of Tether.This latest purchase brings Tether’s total Bitcoin holdings to 92,647 BTC, currently valued at around $7.7 billion, further solidifying its position as one of the biggest institutional Bitcoin holders.
Tether’s Growing Bitcoin Reserves
Tether has been steadily increasing its Bitcoin holdings as part of a long-term investment strategy. The company committed in May 2023 to allocate 14% of its net profits toward Bitcoin purchases—a policy it has consistently followed.
According to Bitcoin Treasuries, Tether is now the sixth-largest Bitcoin holder globally and the second-largest private holder, trailing only Block.one. When factoring in publicly traded companies and Bitcoin ETF issuers, firms like MicroStrategy still hold a larger share of BTC.
Why Is Tether Buying More Bitcoin?
The timing of Tether’s latest Bitcoin acquisition is notable. Recently, Bitcoin has been a key focus in U.S. policy discussions, with President Donald Trump advocating for a Strategic Bitcoin Reserve (SBR) to strengthen national financial security.
Tether’s growing BTC holdings serve multiple purposes:
Strengthening USDT Reserves: Tether’s Bitcoin acquisitions back its $144 billion market cap, securing its dominance in the $234 billion stablecoin market.Long-Term Investment: By diversifying reserves into BTC, Tether benefits from potential Bitcoin price appreciation.Market Confidence: This move reassures investors that Tether is committed to long-term crypto adoption.
$1B USDT Minted Alongside Bitcoin Purchase
Alongside the Bitcoin acquisition, Tether also minted $1 billion worth of new USDT tokens on the Tron blockchain. Tether CEO Paolo Ardoino confirmed the minting, clarifying that these tokens are not yet in circulation but reserved for future issuance.
Since the start of 2024, Tether has minted $8 billion in USDT on Tron, following $22 billion minted in 2023. The latest BTC purchase and stablecoin issuance indicate Tether’s ongoing expansion in the crypto ecosystem.
Tether’s Position in the Crypto Market
Tether’s Bitcoin strategy highlights its role as a key player in the crypto space. With over 60% of the stablecoin market share, Tether’s actions influence liquidity, adoption, and market sentiment.
As Bitcoin’s institutional adoption grows, Tether’s increasing BTC reserves suggest it is preparing for a long-term bullish stance on crypto assets.
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