Stablecoin issuer Tether has cemented its position as a major player in the Bitcoin game, quietly accumulating 66,465 BTC – worth over $2.8 billion – by the end of 2023. This latest acquisition, confirmed by blockchain data, marks Tether’s continued bullish stance on the world’s leading cryptocurrency.
Tether’s bitcoin purchases began in September 2022, with an initial buy of 33,980 BTC. Since then, the company has steadily increased its holdings, with notable purchases in March 2023 (15,915 BTC) and most recently, December 2023 (8,888 BTC).
While specifics of Tether’s bitcoin addresses remain undisclosed, 21.co research analyst Tom Wan identified a potential address belonging to the company in August 2023. Independent sources later confirmed this to be accurate, solidifying Tether’s position as the 11th-largest Bitcoin holder as of today.
Tether’s motivations for accumulating Bitcoin are transparent. CEO Paolo Ardoino previously stated the company’s intention to invest a portion of its profits in cryptocurrency, gradually shifting reserves away from traditional U.S. government debt. This aligns with Tether’s recent announcement of allocating up to 15% of quarterly profits towards Bitcoin purchases.
Tether’s growing bitcoin holdings are likely to raise questions and stimulate discussion within the cryptocurrency community. Some may interpret this as a vote of confidence in Bitcoin’s long-term viability, potentially influencing market sentiment and price movements. Others may raise concerns about potential market manipulation given Tether’s significant influence within the stablecoin ecosystem.
Regardless of these interpretations, Tether’s actions showcase the growing convergence between traditional finance and the burgeoning world of cryptocurrencies. As stablecoins like Tether bridge the gap between fiat and digital assets, their investment strategies become increasingly intertwined with the fate of major cryptocurrencies like Bitcoin.
With Tether actively acquiring Bitcoin and other crypto assets, it’s reasonable to expect the company’s holdings to continue expanding in the future. Over the past period, the amount of Bitcoin held in exchange wallets steadily declined, reaching its lowest level since December 2017. This decrease translates to a mere 5.38% of Bitcoin’s total supply currently residing on exchanges. In addition, Santiment cryptocurrency data platform highlighted this significant trend in a recent tweet.