Stablecoin Issuer Tether Purchases 7,629 Bitcoin Worth $705 Million

Tether has made headlines once again, this time regarding its growing Bitcoin (BTC) reserves.

Recent data reveals that Tether has transferred 7,629 Bitcoin into its reserve wallet, reinforcing its position as a significant player in the Bitcoin market.

The transaction, valued at $705.25 million, marks a notable development as the funds, which had been idle for nine months, came from Tether’s partner exchange, Bitfinex. Following this move, Tether’s Bitcoin reserves now total 82,983 BTC, with an average acquisition price of approximately $36,125, making the current holdings worth around $7.68 billion.

Tether, which leads the stablecoin market with a $138 billion market cap, has been steadily increasing its Bitcoin allocations. This strategy began earlier this year when the company decided to dedicate 15% of its monthly net income to Bitcoin. Alongside its Bitcoin investments, Tether also plans to invest $5 billion into its AI platform in the next year, with a prototype expected by the end of Q1 2025.

Amid these moves, Tether has been facing increasing scrutiny due to regulatory challenges. The implementation of the EU’s Markets In Crypto Assets (MiCA) regulation has raised concerns about the future of USDT, especially with the stablecoin’s market cap recently dropping by $2 billion.

However, Tether’s CEO, Paolo Ardoino, has reassured the public, dismissing claims from competitors and emphasizing that USDT remains secure. Despite potential challenges in centralized exchanges, USDT will continue to be accessible through decentralized exchanges and peer-to-peer platforms.