Tether continues to expand its Bitcoin investments. The company has significantly increased its Bitcoin reserves by purchasing 7,629 BTC worth a total of $705.25 million from cryptocurrency exchange Bitfinex.
Bitcoin Reserves Move After 9-Month Stagnation
This transaction came after nine months of stagnation in Tether’s Bitcoin wallet. With the purchase, the company’s total Bitcoin reserves increased to 82,983 BTC. This amount is equivalent to approximately $7.68 billion, with an average purchase cost of $36,125. In addition, this investment provided Tether with an unrealized gain of $4.72 billion.
Strategic Investment and Diversification Goals
Tether had decided to allocate 15% of its profits to Bitcoin investments in line with the strategy it announced in May 2023. This step made the company the sixth largest holder of Bitcoin. Tether does not see Bitcoin only as a store of value; it also considers it as part of its diversification strategy towards emerging sectors such as artificial intelligence, Bitcoin mining and decentralized communication.
Strong Reserves with Bonds, Gold and Bitcoin
In addition to Bitcoin, Tether holds $100 billion worth of bonds and 48.3 tons of gold. The total profit forecast for 2024 is expected to exceed $7.7 billion. With this data, Tether is among the world's largest bond investors, leaving behind countries such as Germany and the United Arab Emirates in terms of bond investments.