Tether boosts Bitcoin reserves by 7,629 BTC, now holding 82,983 BTC worth $7.68 billion.
USDT market cap drops $2 billion amid EU MiCA compliance concerns.
Tether invests 15% of profits into Bitcoin, strengthening its $7.6 billion crypto reserves.
Tether, the operator of the most popular stablecoin USDT, bought 7,629 BTC, equivalent to about $700 million, for its strategic Bitcoin reserve on December 30. The transaction, provided by on-chain analysis by Arkham Intelligence, indicates that Bitfinex moved funds from its hot wallet to Tether's corporate reserve.
This addition is the largest single purchase that Tether has made for its Bitcoin reserve since March 2024, when it added 8,888.88 BTC. It now owns 82,983 bitcoins worth $7.68 billion if Bitcoin’s current price is $92,300. Tether’s Bitcoin reserves are said to have been purchased for $2.99 billion, with an average purchase cost of $36,125.
https://twitter.com/arkham/status/1873756637011259522 Strategic Bitcoin Acquisitions and Diversification Efforts
On May 2023, Tether’s official statement revealed that the company targets investing up to 15% of its monthly profits in Bitcoin for portfolio and revenue distribution. Since then, the company has been deliberately raising its stakes in various sectors, which are underpinned by its Bitcoin mining activities.
The diversification observed in Tether’s market is not limited to digital currency assets only. It has also entered new industries, including artificial intelligence and decentralized communication. Some businesses have included support for AI-focused Northern Data Group and other technology start-ups. CEO Paolo Ardoino has suggested that common Tether AI projects could become a reality by the end of 2025, which shows that the firm is considering the future when investing.
Regulatory Concerns Impact USDT Market Cap
However, due to its large market capitalization, Tether remains a stable and popular crypto; conversely, the ongoing discussion regarding possible regulatory issues, mainly in the EU, intensifies. After implementing the Markets in Crypto-Assets (MiCA) regulation fully, concerns arose for USDT and its potential for centralized de-listing across the EU.
This kind of uncertainty has affected Tether's general market performance. During the past week, USDT lost $2 billion in market capitalization, going down from $140.5 billion to $138 billion. This drop is the biggest one in a year, characterized by growth with little fluctuation. But the USDT is still available through decentralized exchanges (DEX) and peer-to-peer (P2P) platforms reducing some of these issues.
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