The world’s largest stablecoin issuer, Tether, has reportedly expanded its Bitcoin holdings by acquiring an additional 8,888 BTC. This latest purchase cost a whopping $380 million.
You cannot overstate how crucial this is for Bitcoin price discovery. Tether is earning ~$1bn/Q in interest and then firing as much of that as they want into BTC. Most powerful entity in crypto by far.
** TETHER BOUGHT $380MM OF BITCOIN IN Q4, NOW OWNS $2.8BN**
— Travis Kling (@Travis_Kling) January 18, 2024
This transaction, captured by BitInfoCharts data, took place on December 31, 2023. With this latest acquisition, Tether’s total BTC holdings have reached an impressive 66,465.20.
According to Dune Analytics data, Tether’s holdings position it as the 11th largest Bitcoin holder, boasting a grand fiat valuation slightly exceeding $2.8 billion.
The stablecoin issuer has openly expressed its intent to incorporate Bitcoin into its list of supported assets for USDT. In a May 2023 company release, Tether announced a commitment to allocate 15% of its realized profits from investments to purchase Bitcoin and add the decentralized currency into its reserve basket.
Pointing to its previous foray into the crypto space, Tether stated that it held $1.5 billion in BTC reserves as of its Q1 2023 attestation report. The USDT issuer cited a conservative and prudent approach to investment decisions as the motivation behind this move.
The blockchain-focused tech firm aims to strengthen, expand, and diversify its reserves beyond traditional government bonds and cash-like assets, which typically back most of its stablecoin.
Commenting on the decision, CEO Paolo Ardoino emphasized Bitcoin’s proven resilience, intrinsic capacity as a long-term value store, and widespread
Read more on cryptonews.com