Tether, the issuer of the world’s largest stablecoin USDT, has further solidified its bullish stance on Bitcoin (BTC) with a recent $380 million purchase. This latest acquisition brings Tether’s total Bitcoin holdings to a staggering 66,465 BTC, valued at approximately $2.8 billion at current market prices.
Tether’s Bitcoin Spree:
This strategic move marks a consistent trend for Tether, which began accumulating Bitcoin in September 2022 with an initial purchase of 33,980 BTC. Since then, the company has steadily increased its Bitcoin holdings every quarter, with its second-largest purchase occurring in March 2023 (15,915 BTC) and the most recent purchase ranking as its third-largest to date (8,888 BTC).
Tether’s Bitcoin buying spree first came to light in May 2023 through its inaugural quarterly attestation report. While the company hasn’t officially revealed its Bitcoin addresses, blockchain analysis firm 21.co identified a potential Tether address in August 2023, later confirmed by The Block. This positioning places Tether as the 11th-largest Bitcoin holder, a ranking further solidified by its recent purchases.
Tether’s rationale for its Bitcoin investments is twofold. Firstly, the company aims to diversify its stablecoin reserves, shifting away from traditional U.S. government debt and towards crypto assets like Bitcoin. Secondly, Tether CEO Paolo Ardoino has openly declared the company’s interest in purchasing Bitcoin with up to 15% of its quarterly profits.
Beyond direct investments, Tether is actively involved in the Bitcoin mining and energy production sectors. In November 2023, the company pledged a $500 million investment over six months, encompassing both the construction of its own mining facilities and strategic partnerships with other companies. Additionally, Tether provided a $610 million debt financing package to publicly traded Bitcoin miner Northern Data AG, following its acquisition of shares in the company.
Tether’s primary business remains the operation of its USDT stablecoin, which generated $3.2 billion in excess reserves by September 30, 2023. The company’s fourth-quarter 2023 attestation report, expected in the coming weeks, will likely shed further light on its financial performance and potential future Bitcoin acquisitions.