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Tether Expands Bitcoin Holdings, Becomes 11th Largest BTC Holder with $380M Purchase

Published: January 29, 2024

Written by:barnaby

Tether, the issuer of the world’s largest stablecoin USDT, has reportedly acquired an additional 8,888 Bitcoin, valued at $380 million. This strategic move positions Tether as the 11th-largest holder of Bitcoin and signifies its effort to diversify the assets backing USDT.

In a significant development in the cryptocurrency market, Tether, known for issuing the world’s largest stablecoin (USDT), has reportedly expanded its Bitcoin holdings. The company recently purchased 8,888 Bitcoin, amounting to a substantial $380 million investment. This acquisition further cements Tether’s position as a major player in the cryptocurrency space, now ranking as the 11th-largest holder of Bitcoin.

This move is part of Tether’s broader strategy to diversify its asset base. In May 2023, the company announced plans to allocate up to 15% of its profits into Bitcoin, signaling a shift away from traditional cash and cash-like assets, such as U.S. Treasury bonds, which previously backed its USDT stablecoin. This decision reflects Tether’s confidence in Bitcoin as a viable investment and a key component of its financial strategy.

The acquisition brings Tether’s total Bitcoin holdings to 66,465 BTC. The decision to invest heavily in Bitcoin marks a significant departure from the company’s traditional asset allocation, primarily consisting of government bonds and other traditional financial instruments. As of its latest attestation report, Tether held $72.6 billion in government bonds and $1.7 billion in Bitcoin, among other assets.

Tether’s investment in Bitcoin has been closely watched by the cryptocurrency community and financial regulators. The company has faced scrutiny over the quality and transparency of its assets backing the USDT stablecoin. However, Howard Lutnick, CEO of Cantor Fitzgerald, a firm acting as a custodian for Tether, recently reassured skeptics about the legitimacy of Tether’s holdings.

The Switzerland-based Tether first ventured into Bitcoin investments in September 2022, marking a strategic shift in its asset management approach. This latest purchase not only solidifies its position in the cryptocurrency market but also reflects the growing trend of major financial entities integrating Bitcoin into their investment portfolios.

Tether’s growing Bitcoin reserve highlights the increasing acceptance and integration of cryptocurrencies in mainstream finance. As the market for digital assets continues to evolve, Tether’s investment strategy may set a precedent for other companies in the space, potentially leading to wider adoption and acceptance of cryptocurrencies like Bitcoin.

This development is a clear indication of the growing intersection between traditional finance and the emerging digital asset space, underscoring the dynamic nature of the cryptocurrency market.

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