Tether bolsters bitcoin reserves with $700 million transfer

  • Tether transfers 7,629 BTC worth $700 million, marking its largest Bitcoin reserve addition since March 2024.
  • Amid regulatory hurdles in the EU, Tether continues to strengthen reserves and diversify investments in emerging sectors.

What happened: Tether transfers $700 million worth of Bitcoin to reserves

Tether, the company behind the USDT stablecoin, added 7,629 BTC worth approximately $700 million to its Bitcoin reserve. This transaction, the largest since March 2024, originated from Bitfinex’s hot wallet on December 30.

With this addition, Tether’s Bitcoin holdings now total 82,983 BTC, acquired at an average price of $36,125, valuing the reserve at $2.99 billion. The company has been actively allocating up to 15% of its profits toward Bitcoin as part of its diversification strategy. Beyond Bitcoin, Tether’s investments span US Treasury bonds, cash-equivalent assets, AI, Bitcoin mining, and renewable energy projects.

Despite its robust financial performance, including $134.4 billion in total assets in Q3 2024, Tether faces regulatory challenges in the European Union under MiCA regulations, leading to the delisting of USDT on EU exchanges.

Also read: Bitcoin may surge 10,000%, predicts Pantera Capital’s Morehead
Also read: Dormant bitcoin whale moves 1,000 BTC after 11 years

Why it’s important

Tether’s substantial Bitcoin acquisition highlights its commitment to diversifying beyond traditional assets, reinforcing confidence in its reserves. The decision aligns with the company’s strategic pivot towards Bitcoin during a booming crypto market, offering stability amid increased USDT issuance.

However, the move comes at a time of heightened regulatory scrutiny in the EU, compelling the company to cease issuing its euro-backed EURT stablecoin. This development underscores the evolving dynamics in the stablecoin sector, with competitors like Ripple and Circle capitalising on regulatory hurdles faced by Tether.

Despite these challenges, Tether’s diversified reserve strategy and ongoing investments in emerging technologies reflect its resilience and adaptability in maintaining a leading position in the crypto ecosystem.

Queena-Cai

Queena Cai

Queena Cai is an intern reporter at BTW Media, having studied Construction Economics and Management at University College London. She specialises in Business Project Management and Consultancy. Contact her at q.cai@btw.media.

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