- Tether just added 8,889 Bitcoin (BTC) to its digital vault.
- The total Bitcoin holdings of USDT’s issuer is estimated to be over 75,000 BTC.
Bitcoin Haul of Tether
Although Tether has been hush-hush about its Bitcoin transactions unless it’s already time for their quarterly or annual reports, an on-chain analysis by Arkham Intelligence tracked a whale transaction yesterday involving the company. The analytics firm confirmed that a wallet belonging to the world’s largest stablecoin issuer was a recipient of 8,889 BTC amounting to around $627 million on March 31 via a Bitfinex hot wallet.
It’s not exactly known how much Bitcoin Tether actually holds or how much it bought the asset, but it’s estimated to be somewhere north of 75,000 BTC. At prevailing prices, this should be above $5.25 billion.
At this rate, Tether appears to be gradually positioning itself as one of the largest Bitcoin whales in the world. Its recent move also reinforces the narrative about BTC being the hardest asset out there, which could serve as an effective hedge against the growing concerns about the potential loss of dominance and further devaluation of the US dollar wherein the USDT is pegged.
Tether’s BTC Strategy
“The decision to invest in Bitcoin, the world’s first and largest cryptocurrency, is underpinned by its strength and potential as an investment asset,” said CTO Paulo Ardoino in light of Tether’s series of BTC purchases.
According to its disclosures, Tether has no plans of halting its Bitcoin hoarding anytime soon. Last year, the company stated that it will continue allotting 15% of its excess profits for BTC accumulation. So far, the firm’s wager seems to have been nothing but very rewarding as its latest attestation report during the last quarter of 2023 revealed that $2.8 billion of its consolidated reserves can be attributed to its Bitcoin investment.
With the upcoming halving cutting off the daily rewards of Bitcoin from an average of 900 BTC to 450 BTC per day amid the growing appetite of powerhouse financial institutions for the largest digital asset by market cap, Tether is optimistic that its investment in the prime cryptocurrency will continue to pay off.
Besides its foray into USDT and BTC, Tether has also turned its sights on Bitcoin mining and artificial intelligence (AI) as of late.
Bitcoin Now
With less than 19 days to go until the halving, Bitcoin volatility has been very evident. As of this writing at 4:30 PM UTC, the digital currency just retraced its price back to the $68K mark from a $71K peak within the 24-hour chart.
Nevertheless, BTC remains ninth among the top 10 assets in the world by market cap with its 19.67 million circulating BTC supply valued at $1.35 trillion. On the other hand, Tether’s market cap currently sits at $104.47 billion.