Tether, the issuer of USDT, bought 7,629 $BTC worth $705 million, marking the largest Bitcoin transaction since March 2024. The Bitcoin was transferred to Bitfinex's hot wallet, reinforcing Tether's strategy of diversifying its reserves with digital assets, according to data from Lookonchain.
Increase Bitcoin holdings
Tether's Bitcoin reserves reached 82,983 BTC ($7.68 billion), purchased at an average price of $36,125/$BTC . Tether has pledged to reinvest 15% of its profits into Bitcoin from May 2023, diversifying its reserves beyond Treasury bonds and cash.
The company views Bitcoin as a long-term strategic investment, emphasizing its commitment to stability and promoting the development of the cryptocurrency industry.
Previous Bitcoin Buybacks
In 2024, Tether made three large Bitcoin purchases, including 8,888 BTC in January ($379 million), 8,888 BTC in April ($600 million), and 7,629 BTC in December ($705 million).
These purchases brought its total reserves to 82,983 $BTC BTC, making Tether one of the seven largest institutional investors in Bitcoin globally, demonstrating a long-term strategy amid market volatility.
Implications for the Cryptocurrency Market
Tether has been snapping up Bitcoin amid regulatory pressure and a lack of liquidity in the cryptocurrency market, after USDT lost $1.1 billion in the past few months. The investment in Bitcoin represents a diversification strategy and helps the company weather market volatility.
Tether seeks to stabilize and increase liquidity in the market, while maintaining operational efficiency in a changing regulatory environment, especially as the European Union implements the MiCA regulatory framework.
