Tether, the issuer of the popular stablecoin USDT, has significantly increased its Bitcoin reserves with a purchase worth nearly $780 million. This strategic move marks the company‘s largest transaction since March and highlights Tether's commitment to bolstering its reserves with Bitcoin.

Through two separate transactions, Tether added more than 8,400 Bitcoin to its corporate reserves. At current Bitcoin prices, this addition is valued at $777.4 million. This brings Tether‘s total Bitcoin holdings to 83,759 BTC, equivalent to approximately $7.75 billion.

Why Tether Chooses Bitcoin as a Reserve Asset

A Clear Plan for Profit Reinvestment In May 2023, Tether announced its plan to allocate up to 15% of its net realized profits toward purchasing Bitcoin. This strategy demonstrates the company‘s confidence in Bitcoin as a reliable store of value and a critical part of its financial reserves.

Bitcoin is renowned for its scarcity and decentralization, making it an attractive alternative to traditional financial assets. For Tether, this provides a solid foundation for its operations and helps build trust among its users.

Key Milestone: First Major Purchase Since March

A Pattern of Targeted Investments Tether's previous major purchase occurred on March 31, 2024, when the company added 8,888 Bitcoin to its reserves. This purchase came shortly after Bitcoin surpassed the $70,000 mark and reached a new all-time high. The recent $780 million acquisition reaffirms Tether‘s continued focus on strategic investments in cryptocurrency.

Bitcoin in 2024: A Year of Growth and Volatility

A Doubling in Value, but Not Yet Stable In 2024, Bitcoin has delivered impressive performance, with a 108% increase year-to-date. However, its value has slightly dipped in recent weeks, from a mid-December all-time high of $108,000 to a current level around $92,500. This volatility underscores the dynamic nature of the crypto market and the need for companies like Tether to plan strategically.

Tether: One of the Largest Bitcoin Holders Worldwide

Third Place Globally in Bitcoin Holdings With its recent acquisition, Tether maintains its position as one of the largest private Bitcoin holders. The company now ranks third, surpassed only by Block.one and MicroStrategy. Block.one holds 140,000 BTC, while MicroStrategy leads with an impressive 446,400 BTC.