Tether Accumulates Additional 8,888 Bitcoin, Holdings Surpass $5 Billion
Tether, the company behind the USDT stablecoin, has acquired an additional 8,888 Bitcoin (BTC), valued at $627 million, in Q1 2024.
Tether accumulates Bitcoin from January 11 to April 1, 2024. Source: CoinStats
This recent transaction has boosted Tether's Bitcoin reserve to 75,354 BTC, approximately $5.24 billion. With an average purchase price of $30,305, this portfolio is currently yielding profits of up to $2.94 billion, a gain of 130%.
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Fluctuation in Tether's Bitcoin holdings. Source: CoinStats
Despite not publicly disclosing its addresses, according to research firm 21.co Research, Tether now ranks as the world's 7th largest Bitcoin holder, jumping 4 spots from its 11th position in August 2023. Binance holds the largest amount of Bitcoin, with over 248,597 BTC, approximately $17.31 billion.
Paolo Ardoino, Tether's Chief Technology Officer, confirmed to The Block that the company recently acquired 8,888 Bitcoin, with the accumulation process spanning throughout Q1 this year.
In Q4 2023, Tether also purchased exactly 8,888 Bitcoin. Hence, this trend is likely to continue in the coming quarters.
Tether's decision to increase its Bitcoin reserves coincides with ongoing activities in the Bitcoin spot ETFs, which have yet to calm down, and the upcoming 4th Bitcoin halving event on April 22. Moreover, Bitcoin has recently set its highest monthly candle close and established a new quarterly peak in its 15-year history.
Tether first publicly disclosed its Bitcoin investment in the Q1 2023 asset verification report. At that time, the company announced it would allocate 15% of surplus profits monthly to reallocate reserve assets from government bonds to Bitcoin.
Bitcoin wallet addresses reportedly owned by Tether. Source: BitInfoCharts (April 1, 2024)
Additionally, Tether has focused on Bitcoin mining and has delved into the AI space recently. The organization aims to pioneer the development of multi-method AI models, open-source code to establish new standards, promote innovation, and scale AI technology.
However, Tether's core business operations still revolve around USDT. Tether is currently the largest issuer of stablecoins in the cryptocurrency market, with a total supply of USDT surpassing a record 109 billion.
Not only Tether, but other giants such as MicroStrategy and the Bitcoin nation El Salvador have also actively added this coin to their budgets from late last year to date.
