Tether Bolsters Reserves with Addition of 8,888 Bitcoins, Surpassing 75K Bitcoin Holdings
Tether, the stablecoin issuer, made headlines on March 31st when it acquired 8,888 Bitcoin, worth $618 million. This recent acquisition significantly boosts Tether’s reserves ahead of the upcoming Bitcoin halving event. As a result, the total number of Bitcoins in Tether’s treasury now exceeds 75,000. These Bitcoins were purchased at an average price of $30,305. Tether’s Bitcoin reserves are currently valued at $5.3 billion, and its Bitcoin wallet has increased by 128%, with unrealized profits totaling over $2.94 billion.
Tether has been actively strengthening its Bitcoin reserves since the first quarter of 2023. The company has also unveiled plans to invest up to 15% of its corporate profits, generated from excess USDT reserves, in Bitcoin. This move aims to diversify the stablecoin’s backing assets.
According to data from Bitinfocharts, Tether now holds the seventh-largest amount of Bitcoin in the world. At the time of publication, Binance’s cold wallet holds the top position, valued at $17.31 billion.
Tether CEO Paulo Ardoino has previously stated that the decision to invest in Bitcoin is based on its strength and potential as an investment asset. He believes that investing in Bitcoin not only enhances their portfolio’s performance but also aligns them with a transformative technology that has the potential to reshape the way we conduct business and live our lives.
In their Q4 report for 2023, Tether revealed that Bitcoin contributed $2.8 billion to their consolidated reserves. They also announced their intention to venture into cryptocurrency mining in November of that year, with plans to invest in Bitcoin mining facilities. Tether aims to establish mining operations in Uruguay, Paraguay, and El Salvador.
This development follows Tether’s USDT reaching a record market cap of $100 billion on March 4th, with a year-to-date growth rate of 9%.
Additionally, on March 26th, Tether announced the launch of its dedicated AI division. The company plans to develop open-source AI models and collaborate with other firms to incorporate them into commercial offerings.
