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Tether Boosts Bitcoin Reserves with 8,888 BTC Purchase Worth $380 Million

John KumiBy 0Edited by John Kiguru 19. January 20243 Mins Read
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  • The largest stablecoin issuer Tether, has announced its third-largest Bitcoin acquisition to strengthen its reserves. 
  • Currently, the company is the 11th largest Bitcoin holder with a total of 66,465 BTC. 

Stablecoin issuer Tether, went another length to strengthen and diversify its reserve by purchasing 8,888 BTC at the end of the fourth quarter of 2023. This was worth around $380 million at that time. According to reports, the largest stablecoin issuer currently has its Bitcoin stash reaching 66,465 BTC. This was confirmed by CryptoQuant’s CEO and founder, Ki Young Ju. At the current price of $41,504.71, the total Bitcoins held by Tether are valued at $2.7 billion. 

The Bitcoin buying spree comes after it disclosed in May 2023 that it would be using a portion of its profits to purchase Bitcoin.

In May, it was mentioned that 15 percent of its net realized operating profits would go into this cause. According to them, the current and future Bitcoin holdings in its reserves would not go beyond the Shareholder Capital Cushion.  

Before the announcement, an attestation report by the company disclosed that it had $1.5 billion in Bitcoin reserves. It is important to note that Tether started purchasing Bitcoin in September 2022. At that time, it purchased 33,980 BTC.

By the end of the first quarter of 2023, another 15,915 Bitcoins were bought. Though the company has been consistent in its quarterly Bitcoin purchases, the recent 8,888 BTC acquisition remains its third-largest buy. On top of that, a massive portion of its reserves worth $3.39 billion was invested in precious metals. 

Tether Discloses the Reason for Accumulating Bitcoin

According to Paolo Ardoino, Tether’s CTO, Bitcoin’s reputation as a potential investable asset influenced the decision.

The decision to invest in Bitcoin, the world’s first and largest cryptocurrency, is underpinned by its strength and potential as an investment asset. Bitcoin has continually proven its resilience and has emerged as a long-term store of value with substantial growth potential. Its limited supply, decentralized nature, and widespread adoption have positioned Bitcoin as a favored choice among institutional and retail investors alike.

The company further stated that its incorporation of BTC into its investment strategy was part of its plans to take advantage of the potential growth of the digital asset. Interestingly, it also leveraged its position as a reliable financial infrastructure provider. 

It is important to note that Tether has not revealed the address holding the assets. However, crypto analyst Tom Wan posted an address in August 2023, claiming it belongs to the stablecoin issuer. At the time, the address held 55,022 BTC (worth $1.6 million)

@Tether_to BTC balance increased by $176M compared to last quarter- Using the price as of 30 Jun, it is estimated that they hold ~55,022 BTC – Last Q, I mentioned the below address could belong to Tether: bc1qjasf9z3h7w3jspkhtgatgpyvvzgpa2wwd2lr0eh5tx44reyn2k7sfc27a4.

It is reported that Tether is currently ranked 11th on the list of largest BTC holders. Most of the addresses in the top 10 belong to crypto exchanges including Binance and Bitfinex.

Bitcoin is currently trading at $41,435.63 after declining by 3.3% in the last 24 hours. With a bearish market sentiment, the asset has declined by 10% in the last seven days. 

 

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This article is provided for informational purposes only and is not intended as investment advice. The content does not constitute a recommendation to buy, sell, or hold any securities or financial instruments. Readers should conduct their own research and consult with financial advisors before making investment decisions. The information presented may not be current and could become outdated.

John is a seasoned cryptocurrency and blockchain writer and researcher, boasting an extensive track record of years immersed in the ever-evolving digital frontier. With a profound interest in the dynamic landscape of emerging startups, tokens, and the intricate interplay of demand and supply within the crypto realm, John brings a wealth of knowledge to the table. His academic background is marked by a Bachelor's degree in Geography and Economics, a unique blend that has equipped him with a multifaceted perspective. This diverse educational foundation allows John to dissect the geographical and economic factors influencing the cryptocurrency market, offering insights that go beyond the surface. John's dedication to the crypto and blockchain space is not merely professional but also personal, as he possesses a genuine passion for the technologies that underpin this revolutionary industry. With his astute research skills and commitment to staying at the forefront of industry trends, John is a trusted voice in the world of cryptocurrencies, helping readers navigate the complex and rapidly changing terrain of digital assets and blockchain innovation. John Kiguru is an accomplished editor with a strong affinity for all things blockchain and crypto. Leveraging his editorial expertise, he brings clarity and coherence to complex topics within the decentralized technology sphere. With a meticulous approach, John refines and enhances content, ensuring that each piece resonates with the audience. John earned his Bachelor's degree in Business, Management, Marketing, and Related Support Services from the University of Nairobi. His academic background enriches his ability to grasp and communicate intricate concepts within the blockchain and cryptocurrency space. Business Email: info@crypto-news-flash.com Phone: +49 160 92211628

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