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Tether Expands Bitcoin Holdings With $600 Million Purchase

Tether Expands Bitcoin Holdings With $600 Million Purchase

Apr 1, 2024

Tether Expands Bitcoin Holdings With $600 Million Purchase

In a significant expansion of its Bitcoin holdings, stablecoin issuer Tether has acquired an additional 8,888 BTC, worth approximately $600 million, according to on-chain data. This move comes without an official announcement from the company.

The transactions show that 8,888 BTC were transferred from the exchange Bitfinex to a wallet believed to be associated with Tether. The address in question now reportedly holds over 75,000 BTC, valued at around $5.3 billion. Tether previously disclosed in May 2023 that it had started allocating a portion of its reserves to Bitcoin, intending to invest up to 15% of its quarterly profits.

Paolo Ardoino, Chief Technology Officer of Tether, had previously expressed confidence in Bitcoin as an investment asset. "The decision to invest in bitcoin, the world's first and largest cryptocurrency, is underpinned by its strength and potential as an investment asset," said Ardoino.

While Tether has not publicly confirmed the specific Bitcoin addresses it uses, analysts have linked the recent transaction to the company, citing the consistency with Tether's announced investment strategy and financial report disclosures.

Estimates rank Tether as the seventh-largest holder of Bitcoin. Tether's strategy, alongside similar strategies by institutional investors like MicroStrategy, is believed to contribute to a tightening of Bitcoin's supply.

Despite the expansion, Tether has faced criticism for its opaque operations and the potential market risks posed by its large Bitcoin holdings. Nonetheless, Tether's investment is seen by some as a sign of Bitcoin's growing mainstream acceptance.

Tether, which is also one of the world's largest holders of U.S. Treasuries, appears to be diversifying its reserves, shifting some focus towards Bitcoin. The latest $600 million Bitcoin acquisition indicates a continuation of Tether’s investment strategy, which is expected to further its impact on the Bitcoin market.

Originally reported by Bitcoin Magazine


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