Tether, a prominent stablecoin issuer, drew attention on March 31 with its acquisition of 8,888 Bitcoin, valued at $618 million. This substantial procurement significantly fortifies Tether’s reserves ahead of the impending Bitcoin halving event, pushing the total number of Bitcoins in its treasury beyond 75,000. The acquisition was executed at an average price of $30,305 per Bitcoin.
With this move, Tether’s Bitcoin reserves now stand at a valuation of $5.3 billion, marking a noteworthy increase in its Bitcoin wallet by 128%, with unrealized profits exceeding $2.94 billion.
Tether’s proactive approach in enhancing its Bitcoin reserves dates back to the first quarter of 2023. The company has outlined plans to allocate up to 15% of its corporate profits, stemming from surplus USDT reserves, towards Bitcoin investments. This strategic move aims to diversify the assets backing the stablecoin.
Data from Bitinfocharts underscores the significance of Tether’s latest acquisition, positioning the stablecoin issuer as the seventh-largest Bitcoin holder globally. At the time of reporting, Binance‘s cold wallet claimed the top spot, valued at $17.31 billion.
CEO Paulo Ardoino previously emphasized Tether’s rationale behind investing in Bitcoin, citing its robustness and potential as an investment asset. He underscored the strategic alignment with a transformative technology poised to reshape various facets of business and daily life.
In its Q4 2023 report, Tether disclosed Bitcoin’s contribution of $2.8 billion to its consolidated reserves. The company’s expansion into cryptocurrency mining was unveiled in November 2023, with plans to invest in Bitcoin mining facilities across Uruguay, Paraguay, and El Salvador.
The recent milestone follows Tether’s USDT reaching a historic market cap of $100 billion on March 4, reflecting a 9% year-to-date growth rate.
Furthermore, on March 26, Tether announced the establishment of its dedicated AI division. This division aims to develop open-source AI models and foster collaborations with other entities to integrate these innovations into commercial offerings.
