Tether Reportedly Bought 8.9K Bitcoin for $380M, Remaining 11th-Largest BTC Holder

Tether, the popular stablecoin issuer, has reportedly purchased an additional 8,888 Bitcoin (BTC) for a sum of $380 million, bolstering its position as the 11th-largest holder of the cryptocurrency. This move comes as part of Tether’s ongoing efforts to diversify the backing of its USDT stablecoin, which has a market capitalization of over $95 billion. Tether had previously announced in May 2023 that it would allocate up to 15% of its profits into Bitcoin, aiming to reduce its reliance on cash and cash-like assets. The company’s latest holdings include $72.6 billion in government bonds and $1.7 billion in Bitcoin, among other allocations. Despite past scrutiny regarding the quality of its assets, Howard Lutnick, the CEO of Cantor Fitzgerald, reassured skeptics that Tether’s holdings are legitimate.

Introduction

Tether, the popular stablecoin issuer, has reportedly purchased 8,888 bitcoins at the end of the fourth quarter for a total of $380 million. This acquisition has positioned Tether as the 11th-largest holder of Bitcoin, further solidifying its position in the market. In this article, we will delve into the background of Tether’s Bitcoin purchases, provide details of its recent acquisition, analyze its position as the 11th-largest BTC holder, explore the reasons behind its Bitcoin allocation, discuss Tether’s attestation report, and highlight the reassurance provided by Cantor Fitzgerald’s CEO. We will also take a look at Tether’s history of Bitcoin purchases and conclude with a summary of the key findings.

Background on Tether’s Bitcoin Purchases

Tether is a stablecoin issuer that is well-known for its USDT stablecoin, which is backed by cash and cash-like assets. In May 2023, Tether announced its intention to diversify the backing of USDT by allocating up to 15% of its profits into Bitcoin. This decision marked a shift away from reliance on traditional assets such as U.S. Treasury bonds and cash.

Details of Tether’s Recent Purchase

Tether recently purchased 8,888 bitcoins for a total of $380 million. This substantial acquisition further strengthens Tether’s position as a major holder of Bitcoin. The source of this information is The Block, a leading media outlet covering cryptocurrency news. The implications of this purchase are significant, as it demonstrates Tether’s commitment to diversifying its asset holdings and embracing the potential of Bitcoin.

Tether’s Position as the 11th-Largest BTC Holder

According to a ranking by Dune Analytics, Tether now occupies the 11th position in terms of Bitcoin holdings. This ranking is based on the address associated with Tether. Compared to other major holders of Bitcoin, Tether’s position highlights its influence and significance in the crypto market.

Reasons for Tether’s Bitcoin Allocation

Tether’s decision to allocate a portion of its profits into Bitcoin is driven by several factors. Firstly, by diversifying its asset holdings, Tether aims to mitigate risk and ensure stablecoin holders that their assets are backed by a diverse and robust portfolio. Secondly, Tether seeks to reduce its reliance on cash and cash-like assets, which may be subject to inflation or other economic uncertainties. Furthermore, Tether recognizes the potential of Bitcoin as a valuable asset class and aims to capitalize on its long-term growth prospects. Finally, the market demand for Bitcoin-backed stablecoins has been increasing, and Tether’s Bitcoin allocation allows it to cater to this demand and maintain its leading position in the stablecoin market.

Tether’s Attestation Report

Tether’s latest attestation report provides a breakdown of its asset allocations. According to the report, Tether holds $72.6 billion in government bonds and $1.7 billion in Bitcoin, among other assets. This transparency measure allows stakeholders to gain insight into Tether’s asset composition and fosters trust in the stability of the USDT stablecoin.

Cantor Fitzgerald CEO’s Reassurance

Cantor Fitzgerald, a financial services firm, acts as a custodian for Tether. In light of the scrutiny surrounding the quality of Tether’s assets, Cantor Fitzgerald CEO Howard Lutnick has provided reassurance that Tether’s holdings are legitimate. This endorsement from a trusted financial institution underscores the credibility of Tether’s asset management practices and helps alleviate concerns about the stability of USDT.

Tether’s History of Bitcoin Purchases

Tether made its initial Bitcoin purchase in September 2022, marking the beginning of its foray into the cryptocurrency. Since then, Tether has steadily increased its Bitcoin holdings, culminating in the recent acquisition of 8,888 bitcoins. These cumulative purchases over time have contributed to Tether’s current position as the 11th-largest holder of Bitcoin.

Conclusion

In conclusion, Tether’s recent purchase of 8,888 bitcoins for $380 million has solidified its position as the 11th-largest BTC holder. The decision to allocate a portion of its profits into Bitcoin is driven by a desire to diversify its asset holdings, reduce reliance on cash-like assets, capitalize on Bitcoin’s potential, and meet market demand for Bitcoin-backed stablecoins. Tether’s attestation report provides transparency and insights into its asset composition, while Cantor Fitzgerald CEO’s reassurance further instills confidence in the stability of Tether’s holdings. With a history of Bitcoin purchases and a commitment to maintaining a diverse portfolio, Tether continues to play a significant role in the cryptocurrency market.