The USDT stablecoin issuer Tether has purchased 8888 Bitcoins. The value of the purchase was approximately $618 million.
The latest purchase significantly strengthens Tether’s Bitcoin reserves. Tether now owns slightly more than 75,000 bitcoins. The average purchase price of these bitcoins is 30,305 dollars, which means that Tether has managed to time its purchases very well.
Tether Adds 8,888 BTC Worth $600 Million To Bitcoin Treasury, On-Chain Data Shows https://t.co/VALgQXf491
— zerohedge (@zerohedge) April 1, 2024
This purchase was no surprise to those following Tether, as the company has been actively seeking to strengthen its Bitcoin balance since 2023. Tether plans to invest up to 15% of its USDT-generated profits into Bitcoin, which will help diversify its assets that back the USDT stablecoin.
Tether is now the world’s seventh-largest Bitcoin holder and its bitcoins are worth about five billion dollars. This will undoubtedly change when Tether continues its Bitcoin acquisitions.
Tether believes in Bitcoin
Tether CEO Paul Ardoino commented on Tether’s Bitcoin purchases:
The decision to invest in Bitcoin is based on its strength and potential as an investment. Our investment in Bitcoin is not only a way to improve our investment portfolio, but it is also a way to connect with the ever-changing technology that has the potential to shape our business and our lives.
Tether’s management has strong faith in Bitcoin, as indicated by its plans to invest in mining. Tether aims to establish Bitcoin mining facilities in Uruguay, Paraguay, and El Salvador.
Investing in Bitcoin has been a very successful business for Tether. In the last quarterly report of 2023, the company reported that Bitcoin increased the company’s total reserves by a whopping $2.8 billion. Tether has been adding Bitcoin to its balance sheet quarterly since 2022.
Tether has also revealed its plans to launch an AI division. This division aims to develop open-source AI models and collaborate with other companies to commercialize them.
Summary:
- Tether added 8888 bitcoins to its balance sheet.
- Tether is now the 7th largest Bitcoin holder.
- Tether also aims to invest in Bitcoin and its mining in the future.