Tether Boosts Bitcoin Holdings with $600 Million Acquisition
Stablecoin issuer Tether has made a significant move in the cryptocurrency market by acquiring 8,888 BTC worth around $600 million. The purchase, which was not officially announced but revealed through on-chain data, highlights Tether’s growing interest in Bitcoin as an investment asset.
While Tether has not disclosed its Bitcoin addresses publicly, recent transactions on the blockchain show a substantial transfer of 8,888 BTC from the crypto exchange Bitfinex to an undisclosed Tether wallet. This brings the total amount of BTC held by the recipient address to over 75,000, valued at $5.3 billion.
Tether first announced its intention to allocate a portion of its reserves to Bitcoin in May 2023, with plans to invest up to 15% of quarterly profits. Paolo Ardoino, CTO of Tether, emphasized the strength and potential of Bitcoin as an investment asset in the company’s statement regarding their Bitcoin strategy.
Analysts believe that the identified wallet likely belongs to Tether, as the amount transferred aligns with its buying strategy and claimed holdings in recent financial reports. Tether has become a major player in Bitcoin markets and its accumulation race, now ranking as the seventh largest holder of BTC.
Despite concerns raised by critics about Tether’s lack of transparency and the potential market risks associated with its growing Bitcoin stash, the company’s embrace of Bitcoin reflects the asset’s increasing mainstream acceptance. Tether aims to capitalize on Bitcoin’s growth while diversifying its reserves away from traditional assets like government debt, in which it is also a major holder.
With this latest $600 million acquisition, Tether’s influence over Bitcoin markets is expected to continue growing as the stablecoin leader executes its Bitcoin investment strategy. As Tether remains committed to expanding its Bitcoin holdings, the cryptocurrency community will be closely watching its impact on the market.
