Tether adds $780M in Bitcoin to reserve in major move

Tether (CRYPTO:USDT), a major stablecoin issuer, has transferred approximately $780 million worth of Bitcoin (CRYPTO:BTC) into its corporate reserve, marking its largest acquisition since March.

According to Arkham Intelligence, the transaction involved 8,404.5 Bitcoin, split into two transfers of 7,628.9 BTC and 775.6 BTC.

These additions bring Tether’s total Bitcoin holdings to 83,759 BTC, valued at $7.75 billion, with Bitcoin trading at around $92,500 during the transactions.

Tether’s strategy, announced in May 2023, involves allocating up to 15% of its net realised operating profits to Bitcoin purchases.

This move is consistent with that plan, following a March 31 acquisition of 8,888.88 BTC when Bitcoin’s price exceeded $70,000.

Bitcoin has seen significant price growth in 2024, doubling in value with a 108% year-to-date increase, though it recently declined from its mid-December peak of $108,000.

With this addition, Tether ranks as the second-largest Bitcoin holder among private companies, holding 83,759 BTC.

It is surpassed only by Block.one, which owns 140,000 BTC.

Across all entities, including public companies, Tether is third behind MicroStrategy, which holds 446,400 BTC.

The trend of corporate Bitcoin acquisitions has accelerated throughout 2024, spurred by Bitcoin’s price rally.

Many companies see the cryptocurrency as a tool to strengthen their financial reserves.

For instance, KULR Technology Group recently acquired 217.18 BTC for $21 million on December 16, leading to a 40% rise in its stock value.

Similarly, Quantum BioPharma invested $1 million in Bitcoin and other cryptocurrencies on December 20, citing treasury diversification as a key reason.

At the time of reporting, the Tether (USDT) price was $0.998 and the Bitcoin price was $92,255.47.