Stablecoin issuer Tether conducted its largest Bitcoin purchase of the year on December 30, transferring nearly $780 million worth of Bitcoin (BTC) into its corporate reserves, demonstrating strong confidence in Bitcoin's long-term value.

8,404 Bitcoins transferred into reserves

According to data from the blockchain data analysis platform Arkham, wallets labeled as Tether corporate reserves received two Bitcoin transfers on December 30, totaling approximately 8,404.5 Bitcoins, with individual transfers of 7,628.9 and 775.6 Bitcoins. Calculating based on the Bitcoin price at the time ($92,500), the total value of this batch of assets reached $777.4 million.

Following this increase, Tether's total Bitcoin holdings rose to 83,759 Bitcoins, with a total value nearing $7.75 billion, solidifying its position on the global corporate Bitcoin holdings leaderboard.

Tether's Bitcoin reserve strategy

As early as May 2023, Tether announced that it would regularly use up to 15% of its net operating profits to purchase Bitcoin as a crucial part of its corporate asset allocation. This increase in holdings is the first significant action since March 2024, when Tether had increased its holdings by 8,888.88 Bitcoins after Bitcoin broke the $70,000 mark.

According to data from Bitcoin Treasuries, Tether is now the world's second-largest 'private enterprise' holder of Bitcoin, second only to blockchain software company Block.one, which holds 140,000 Bitcoins.

Overall, whether private or public companies, Tether ranks third on the Bitcoin reserve leaderboard among all enterprises, with the first being publicly traded company MicroStrategy, which holds 446,400 Bitcoins.

Bitcoin becomes the new darling of corporate financial reserves

As Bitcoin prices steadily rise, the trend of companies incorporating Bitcoin into their financial reserves has become increasingly evident, with more and more companies announcing the acquisition of Bitcoin as part of their reserve assets this year. Recent examples of corporate increases include:

  • KULR Technology Group announced on December 16 that it purchased 217.18 Bitcoins for $21 million, with its stock price soaring over 40% on that day, setting a new historical high.

  • Quantum BioPharma announced on December 20 that it invested $1 million to purchase Bitcoin and other cryptocurrencies to diversify its financial reserves.

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