Tether Expands Bitcoin Portfolio, Securing Position as a Major BTC Holder
Tether, the entity behind the world’s most prominent stablecoin, USDT, has recently augmented its Bitcoin (BTC) investments. As reported by The Block, the company acquired an additional 8,888 BTC, valued at approximately $380 million, towards the end of the last quarter. This purchase has bolstered Tether’s Bitcoin reserves to 66,465 BTC, ranking it as the 11th largest holder of the digital currency, based on data from Dune Analytics.
In a strategic shift, Tether announced in May 2023 its intent to diversify from traditional cash and cash-equivalent assets like U.S. Treasury bonds, which have been backing its USDT stablecoin. The plan includes allocating up to 15% of its profits into Bitcoin. This decision underlines Tether’s confidence in Bitcoin, given that USDT holds the title of the world’s largest stablecoin, boasting a market cap exceeding $95 billion.
The latest financial attestation for Tether revealed holdings of $72.6 billion in government bonds and $1.7 billion in Bitcoin, among other assets. Despite facing scrutiny over the quality of its asset base, Tether has received backing from notable figures like Howard Lutnick, CEO of Cantor Fitzgerald. Lutnick, whose firm serves as a custodian for Tether, recently affirmed the legitimacy of Tether’s holdings.
Tether’s journey into Bitcoin investment began in September 2022, marking a significant step for the Switzerland-based company in the cryptocurrency landscape.
