Tether adds 7629 BTC worth 705 million to reserves pushing total holdings to 82983 BTC amid USDT supply drop.
USDT supply falls 1.1 billion as MiCA regulations loom while Tether invests heavily in Bitcoin for growth.
Tether Bitcoin reserves hit 7.68 billion highlighting strategic growth despite regulatory and liquidity challenges.
Tether has increased its Bitcoin reserves after nine months of inactivity. The company added 7629 BTC worth 705 million. These funds came from Bitfinex and now bring Tether’s total Bitcoin holdings to 82983 BTC. At current market prices, these reserves are valued at 7.68 billion.
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Tether acquired its Bitcoin reserves for 2.99 billion at an average price of 36125 per Bitcoin. This marks the third large Bitcoin purchase by Tether this year. Earlier in 2024, the company bought 8888 BTC valued at 379 million. Another similar purchase in April added 8888 BTC worth 600 million.
Tether Focuses on Bitcoin Investments
Tether started buying Bitcoin as part of its profit allocation strategy announced in May 2023. The company committed to using up to 15% of its net realized profits to acquire Bitcoin. This plan is part of a broader strategy to diversify and strengthen its reserves.
Bitcoin’s limited supply and growing adoption make it a valuable addition to Tether’s portfolio. Blockchain data shows that Tether’s investments aim to prepare for market uncertainties.
USDT Supply Faces Decline
While Tether grows its Bitcoin holdings, the circulating supply of USDT has dropped. Data reveals a decline of over 1.1 billion in the past week. This drop may be tied to regulatory challenges in Europe.
The Markets in Crypto-Assets Regulation has set strict rules for stablecoins. Exchanges may delist USDT if Tether fails to comply. This has raised uncertainty in the market and reduced liquidity.
Balancing Reserves and Market Challenges
Tether is balancing its Bitcoin investments with regulatory issues. The company continues to adapt while facing challenges in global markets. Its growing Bitcoin reserves show a commitment to diversification and long-term stability. However, the decline in USDT supply highlights the impact of compliance concerns on liquidity and market operations.
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