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Tether adds 8,888 BTC worth $600 million to Bitcoin treasury, on-chain data shows

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Stablecoin issuer Tether has significantly expanded its Bitcoin holdings, acquiring 8,888 BTC worth approximately $600 million. This latest purchase was revealed via on-chain data rather than an official announcement.

Tether has not publicly disclosed its Bitcoin addresses. However, transactions tracked on the blockchain show that 8,888 BTC were recently sent from crypto exchange Bitfinex to an undisclosed Tether wallet.

The recipient’s address now contains over 75,000 BTC worth $5.3 billion. In May 2023, Tether revealed for the first time that it was allocating a portion of its reserves to Bitcoin, with plans to invest up to 15% of quarterly profits.

“The decision to invest in Bitcoin, the world’s first and largest cryptocurrency, is supported by its strength and potential as an investment asset,” said Paolo Ardoino, CTO of Tether, in the communicated when announcing its Bitcoin strategy.

Although unconfirmed, analysts believe the identified wallet likely belongs to Tether. The amount fits perfectly with its promised purchasing strategy and the assets claimed in its latest financial reports.

Tether has become a major player in the Bitcoin markets and in its race for accumulation. The company is now estimated to be the seventh largest holder of BTC. Its regular purchases, combined with those of institutional investors like MicroStrategy, tighten supply.

Critics have raised concerns about Tether’s lack of transparency and potential market risks related to its growing bitcoin reserve. However, its adoption of Bitcoin also shows the growing acceptance of this asset among the general public.

Tether aims to capitalize on the growth of Bitcoin while diversifying its reserves from traditional assets like government debt. Tether is one of the largest holders of US Treasuries in the world.

This latest $600 million acquisition is unlikely to be Tether’s last. As the stablecoin leader continues to execute its Bitcoin investment strategy, its influence over the Bitcoin markets will only increase.

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