Tether Adds $380 Million to Its $2.42 Billion Stash

Tether’s strategic Bitcoin acquisitions and evolving investment approach raise compelling questions about its impact on the cryptocurrency landscape.

New pile of golden coins covering the Tether space.
Created by Kornelija Poderskytė from DailyCoin
  • Tether’s recent surge in Bitcoin acquisitions has sparked questions about its long-term strategy.
  • CEO Paolo Ardoino has planned to allocate up to 15% of Tether’s profits into Bitcoin quarterly.
  • Tether has solidified its position as a major player in the cryptocurrency market.

While Tether’s growing appetite for Bitcoin is no secret, the pace and size of its recent acquisitions raise intriguing questions about the company’s long-term strategy and potential impact on the cryptocurrency landscape. Tether has significantly increased its exposure to Bitcoin, snapping up another $380 million of the digital asset at the end of last quarter. 

Tether Doubles Down on Bitcoin

This latest purchase brings Tether’s total Bitcoin holdings to a staggering 66,465 coins, valued at approximately $2.8 billion – cementing its position as one of the world’s largest Bitcoin whales.

This latest buying spree follows a year of consistent Bitcoin acquisitions, beginning with an initial purchase of 33,980 BTC in September 2022. Since then, Tether has added to its stash every quarter, with its second-largest purchase of 15,915 BTC occurring in March 2023.

The company’s foray into Bitcoin began quietly, with its holdings only coming to light in May 2023 through its first-quarter attestation report. While Tether has remained tight-lipped about its specific Bitcoin addresses, blockchain detectives were able to piece together the puzzle.

Tether Eyes 15% Allocation

CEO Paolo Ardoino has previously stated that Tether plans to invest a portion of its profits in Bitcoin regularly, with a target of up to 15% allocated to the cryptocurrency each quarter. Tether’s aggressive Bitcoin buying spree will fuel further debate about the relationship between stablecoins and the broader cryptocurrency market.

In a statement sent to Dailycoin, Tether has stated that: "Tether recognizes the significance of Bitcoin (BTC) as a fundamental asset for effective portfolio allocation, given its unique properties. With its decentralization and limited supply, Bitcoin embodies a robust and secure monetary symptom, revolutionizing the notion of currency and presenting a formidable challenge to the traditional financial system. Therefore, Tether has committed to utilizing up to 15% of its net operating profits generated by the Group to purchase Bitcoin. Rather than distributing dividends to shareholders Tether is reinvesting in diversification."

With its sizeable Bitcoin holdings and ongoing acquisition spree, Tether’s influence within the crypto market is undeniable. The company’s actions are likely to be closely watched, raising questions about their impact on Bitcoin price fluctuations and the overall stability of the crypto ecosystem.

On the Flipside

  • This lack of upfront disclosure has led to concerns about the overall openness and accountability of Tether’s practices.
  • A heavy reliance on cryptocurrencies could expose Tether and its users to increased market risks.

Why This Matters

With its sizeable Bitcoin holdings and ongoing acquisition spree, Tether’s influence within the crypto market is undeniable. The company’s actions are likely to be closely watched, raising questions about their impact on Bitcoin price fluctuations and the overall stability of the crypto ecosystem.

To learn more about Tether’s recent minting of an additional $1 billion USDT, expanding its market cap to $93 billion, read here:
Tether Mints Another $1B USDT Pushing Its Market Cap to $93B

To gain insights into Tether CEO’s response to a UN report addressing concerns about illicit activity, read here:
Tether CEO Responds to UN Report Regarding Illicit Activity

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Kyle Calvert

Kyle Calvert is a cryptocurrency news reporter for DailyCoin, specializing in Ripple, stablecoins, as well as price and market analysis news. Before his current role, Kyle worked as a student researcher in the cryptocurrency industry, gaining an understanding of how digital currencies work, their potential uses, and their impact on the economy and society. He completed his Masters and Honors degrees in Blockchain Technology within Esports and Business and Event management within Esports at Staffordshire University.