Tether acquires $705 million worth of bitcoins, expanding strategic reserves
Tether has added 7,629 #BTC ($705 million) to its reserves, bringing its total to 82,000 coins
The purchase is in line with the company's strategy to reinvest profits in bitcoins
#Tether aims to diversify its reserves and strengthen its financial stability.
Tether, which issues the largest fiat stablecoin USDT, purchased 7,629 BTC worth about $705 million, further strengthening its position as a major backer of #bitcoin .
According to Lookonchain, bitcoin units were transferred to a hot wallet on Bitfinex, the address of Tether's strategic bitcoin reserve. This is the largest bitcoin purchase since March 2024 and confirms Tether's strategy to diversify its reserves with digital assets.
Tether's bitcoin reserves currently total 82,983 BTC, equivalent to approximately $7.68 billion at current market exchange rates. These reserves were purchased for US$2.99 billion at a price of US$36,125 per bitcoin. The addition comes after Tether announced in May that it would use up to 15% of its profits to buy bitcoins by May 2023.
This acquisition is part of Tether's plan to invest in a variety of bonds and other assets other than U. S. Treasuries and cash, which make up the bulk of its reserves. Recently, the use of bitcoin as part of the company's reserve assets has become increasingly active.
Tether's commitment to reinvesting profits in long-term assets shows that the company is seeking stability and exploring new revenue opportunities.
This milestone, illustrates our belief that bitcoin is a long-term strategic investment, Tether management said. Our goal is to contribute to the growth of the #cryptocurrency industry as a whole while maintaining prudent management.
The December deal was Tether's third major purchase in 2024: in January, the company acquired 8,888 BTC (valued at $379 million), bringing its total assets to 66,465 BTC.
Following that, in April, it bought 8.
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