Tether's Bullish Move Cements Status As Major Bitcoin Player With $380 Million Bet

Tether, the stablecoin issuer of the world's largest stablecoin by market capitalization USDT, solidified its standing as a major Bitcoin holder when it made a strategically significant acquisition of 8,888 BTC toward the end of the previous fiscal quarter, bringing its total Bitcoin holdings to 66,465.

The wallet address linked to the stablecoin issuer currently reflects a substantial Bitcoin holding of 66,465, with a staggering market valuation of approximately $2,791,488,153.31.

Remarkably, data sourced from Dune Analytics showed that this particular address occupies the 11th position within the esteemed Top 100 Bitcoin Holders list, laying claim to an impressive 0.3% stake in the prevailing circulating supply of the world's largest cryptocurrency by market capitalization.

Further analysis of the data reveals a notable financial achievement, as the wallet address has accrued a remarkable profit of $1,118,103,460.75 from its Bitcoin portfolio.

"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," the stablecoin issuer told International Business Times.

"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," the company added.

Tether initially disclosed its Bitcoin holdings, amounting to a substantial $1.5 billion, during the first quarter of 2023.

Following this revelation, in May of the same year, the company made a significant declaration by unveiling its intention to allocate up to 15% of its profits toward acquiring Bitcoin

"Starting this month, Tether will regularly allocate up to 15% of its net realized operating profits towards purchasing Bitcoin (BTC). Tether anticipates that the current and future BTC holdings in its reserves will not exceed the Shareholder Capital Cushion and will further strengthen and diversify the reserves, " Tether said in a blog post in May," the issuer of the world's largest stablecoin with a market capitalization of over $95 billion said at the time.

"Tether's purchase of BTC is part of its conservative and prudent approach to investment decisions aimed at strengthening, increasing and diversifying its reserves. By implementing this framework, Tether aims to enhance transparency and provide a clearer view of the company's performance and capital allocation strategy," it added.

In a remarkable display of financial strength, Tether reported a staggering $3.2 billion in excess reserves as of September 2023.

This financial achievement was documented in the firm's third-quarter attestation report, which was made publicly available in October of that year.