Tether Increases Bitcoin Holdings, Now One of the Top Bitcoin Investors

Tether has expanded its Bitcoin holdings by purchasing an additional 8,889 bitcoins, valued at approximately $627 million.

This acquisition increases its total Bitcoin reserves to 75,354 BTC, with a current value of $5.26 billion according to data from Arkham Intelligence.

The initiative began in September 2022, with Tether integrating Bitcoin into its portfolio to diversify beyond traditional assets like cash and Treasury bonds.

Up to 15% of its profits from Tether stablecoin reserves are now being directed into Bitcoin, according to CEO Paolo Ardoino. He cites Bitcoin's limited supply and broad acceptance as key factors for this investment decision.

This strategic move towards Bitcoin has resulted in significant profit gains for Tether, contributing to a record-breaking net profit of $2.85 billion in the last quarter of 2023.

Profits were bolstered by operational gains from U.S. Treasury interests and the increased value of its gold and Bitcoin reserves.

Tether now stands as the sixth-largest Bitcoin holder, just behind major players like Fidelity’s FBTC and MicroStrategy, according to Apollo Sats.

The leading position is occupied by nine new spot ETFs, holding a total of 501k BTC.

Through these actions, Tether demonstrates its belief in the transformative potential of cryptocurrencies, positioning itself as a pioneer in the adoption and integration of digital assets into traditional finance.