Tether Strengthens Bitcoin Reserves with a $380 Million Purchase, Surpassing $2.8 Billion Holdings

Stablecoin Giant Tether's Bitcoin Accumulation Continues

Tether, the stablecoin issuer, has expanded its bitcoin holdings with a recent purchase of $380 million worth of bitcoin at the end of the last quarter. This acquisition brings Tether's total bitcoin holdings to 66,465 BTC, equivalent to $2.8 billion.

Consistent Bitcoin Accumulation Strategy

Tether initiated its bitcoin buying spree in September 2022 with an initial purchase of 33,980 BTC. Since then, the company has consistently added to its bitcoin holdings every quarter. The most recent purchase of 8,888 BTC at the end of the fourth quarter of 2023 marks Tether's third-largest acquisition to date.

Disclosure and Ranking

Tether disclosed its bitcoin holdings for the first time in May 2023 as part of its first-quarter attestation report. While Tether hasn't officially revealed its bitcoin addresses, 21.co Research Analyst Tom Wan identified an address last August that he estimated belonged to Tether. The company confirmed at the time that it was indeed their address, positioning Tether as the 11th-largest bitcoin holder. Tether continues to maintain this ranking with its latest purchases.

Tether's Bitcoin Investment Strategy

Tether has expressed its commitment to regularly invest a portion of its profits in bitcoin, allocating up to 15% of its profits on a quarterly basis for such purchases. This strategy aligns with Tether's goal to shift its stablecoin reserves towards cryptocurrencies and away from U.S. government debt.

Beyond Bitcoin Investments

In addition to direct bitcoin investments, Tether is actively involved in the bitcoin mining and energy production sector. The company committed to investing $500 million over the next six months for constructing bitcoin mining facilities and taking stakes in other companies. Tether's engagement extends to debt financing and share acquisition in the publicly traded bitcoin mining company Northern Data AG.

Tether's Core Business and Financial Standing

While Tether's primary business is running the USDT stablecoin, the recent attestation report for the third quarter of 2023 revealed excess reserves of $3.2 billion as of September 30, 2023. Tether's fourth-quarter attestation report for 2023 is anticipated in the coming weeks.

In summary, Tether's substantial bitcoin holdings continue to grow with a recent $380 million purchase, aligning with the company's strategy to invest a portion of its profits in bitcoin regularly.