Tether buys $618 million worth of Bitcoin, becomes 7th largest holder

Tether, which operates the popular stablecoin USDT, expanded its Bitcoin holdings on March 31st by acquiring 8,888 Bitcoins worth $618 million.

S&P questions Tether stability and USDT reserves

The acquisition increases Tether’s total Bitcoin holdings to 75,354 bits, acquired at an average price of $30,305 per Bitcoin, and the portfolio is now valued at nearly $5.2 billion, according to recent on-chain data. .

The company’s Bitcoin wallet posted significant gains, posting unrealized gains of over 128%, amounting to $2.94 billion. This performance was driven by the approval of a spot Bitcoin exchange-traded fund in the US and expectations for the Bitcoin halving event, where block rewards will be halved in just 19 days, increasing institutional interest in Bitcoin. It was realized while I was there.

Tether currently ranks as the seventh largest Bitcoin holder in the world, trailing only Binance’s cold wallet, which holds over 248,597 Bitcoins worth $17.31 billion. The move is in line with Tether’s strategy to allocate 15% of its net profits to Bitcoin, with the aim of further diversifying its stablecoin backing assets.

The USDT stablecoin recently achieved a milestone, reaching $100 billion in market capitalization on March 4, an increase of 9% year-to-date. Additionally, Tether also plans to venture into Bitcoin mining with a proposed $500 million investment to strengthen its commitment to the Bitcoin ecosystem.

With Bitcoin price hovering above $69,000, the market may have finished its pre-halving correction phase. Bitcoin has managed to hold support above its all-time high of $69,000 since March 25, even amidst a massive options expiration event. Experts suggest that the impact of the halving may not be fully reflected in Bitcoin price yet and could rise further as the halving approaches.

According to the latest certified report conducted by global auditing firm BDO, Tether reported a record net profit of $2.9 billion in the fourth quarter of 2023. This increase in profits increased Tether’s excess reserves by $2.2 billion, for a total of $5.4 billion. The remaining profits were used to invest in various projects such as mining, AI infrastructure, and P2P communications. These investments are not considered part of Tether’s reserves.

BDO’s certification confirmed that Tether’s $4.8 billion in unsecured loan balances were fully funded by these excess reserves at year-end. Tether expressed pride in removing collateralized loan risk from its token reserves, a move in response to community concerns about this aspect of the portfolio.

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