Tether Splurges $380M on 8.9K Bitcoin, Rises as 11th-Largest BTC Holder

• Tether Increases Bitcoin Holdings
• Tether's Move From Cash Alternatives
• Tether's Asset Portfolio

Tether Increases Bitcoin Holdings

Tether$1.000 -0.12%, a prominent player in the cryptocurrency space, increased its Bitcoin$42,260 -0.64% (BTC) holdings in the final quarter, purchasing an additional 8,888 BTC for $380 million, as reported by The Block. Examination of a Bitcoin address linked to the company reveals holdings of 66,465 BTC. This substantial amount qualifies Tether as the 11th-largest holder of the cryptocurrency, based on a list provided by Dune Analytics.

Tether's Move From Cash Alternatives

In a notable deviation from cash and cash-like assets, including U.S. Treasury bonds that underpin its USDT stablecoin, Tether publicly declared in May 2023 its decision to distribute up to 15% of its earnings into Bitcoin. Currently, USDT is the leading stablecoin globally, boasting a market capitalization exceeding $95 billion.

Tether's Asset Portfolio

In the company's most recent attestation report, Tether disclosed holding $72.6 billion in government bonds and $1.7 billion in Bitcoin, among other allocations. Questions have been raised about the quality of Tether's assets, prompting responses from industry figures such as Cantor Fitzgerald CEO Howard Lutnick. Lutnick, whose company provides custodian services for Tether, recently defended the legitimacy of Tether's holdings.

Tether, headquartered in Switzerland, made its initial Bitcoin purchase in September 2022.

Edited by Jonathan Stoker