Tether's Bitcoin Holdings Surge with Acquisition of 8,888 BTC, Boosting Reserves Amid Institutional Interest

Tether, the issuer of the USDT stablecoin, has significantly increased its Bitcoin holdings, purchasing an additional 8,888 Bitcoin valued at $618 million. This latest acquisition boosts Tether's Bitcoin portfolio to 75,354 units, now worth approximately $5.2 billion, reflecting a substantial unrealized profit of over $2.94 billion.

Tether Amasses Significant Bitcoin Holdings, Bolstering its Reserves

New York, April 1, 2023 - Tether, the issuer of the widely used stablecoin USDT, has made a substantial addition to its Bitcoin reserves, acquiring 8,888 Bitcoin on March 31. This transaction, valued at approximately $618 million, brings Tether's total Bitcoin holdings to 75,354 units.

The strategic acquisition reflects Tether's commitment to diversifying its reserves and capitalizing on the growing institutional interest in Bitcoin. This interest has been fueled by the recent approval of spot Bitcoin exchange-traded funds (ETFs) in the United States and the anticipation of the upcoming Bitcoin halving event, which is expected to reduce the issuance of new Bitcoin by half in just 19 days.

As a result of its latest acquisition, Tether has ascended to become the seventh-largest Bitcoin holder globally. The company's Bitcoin portfolio is now valued at approximately $5.2 billion, acquired at an average price of $30,305 per unit. This represents a substantial unrealized profit of over 128%, amounting to approximately $2.94 billion.

Tether's move is part of a broader trend of institutional investors allocating a portion of their assets to Bitcoin. This growing demand has contributed to Bitcoin's strong price performance, which has seen it consistently trade above the $69,000 mark since March 25.

Analysts suggest that Bitcoin's resilience in flipping its previous all-time high of $69,000 into support indicates the end of the pre-halving correction period. The anticipation surrounding the halving event is high, with Bitcoin setting new all-time highs before such events, an unprecedented occurrence in its history.

Experts believe that the halving's impact is not yet fully accounted for in Bitcoin's current valuation. Basile Maire, co-founder of D8X decentralized exchange, stated, "The halving has never been priced in, and it will only be priced in once it happens."

Tether's acquisition of Bitcoin aligns with its long-term strategy of diversifying its assets and maintaining the stability of its stablecoin. The company had previously announced its intent to allocate 15% of its net profits towards Bitcoin investments.

This announcement came shortly after Tether's USDT reached a milestone $100 billion market cap on March 4, reflecting a 9% growth since the beginning of the year. USDT remains the most widely used stablecoin, providing a reliable medium of exchange and store of value in the cryptocurrency ecosystem.

The cryptocurrency market has experienced a minor dip in the past 24 hours, with Bitcoin's price decreasing by approximately 1.23%. However, Bitcoin has maintained a strong momentum, closing seven consecutive monthly green candles for the first time in its history.

As the anticipation for the halving event continues to build, investors are closely watching Bitcoin's price action. The halving is expected to trigger a significant price rally, as it has done in previous events. Tether's substantial Bitcoin holdings position the company to benefit from the potential price appreciation, further solidifying its position as a key player in the cryptocurrency industry.