In the first quarter of 2023, Tether reported acquiring $627 million worth of Bitcoin (8,888 BTC), boosting its holdings to 75,354 BTC (800 billion yen), making it the world's fourth-largest corporate Bitcoin holder, after Block.one, MicroStrategy, and Coinbase. Tether's Bitcoin purchases align with its strategy of diversifying its USDT backing assets from US Treasuries into BTC.
Tether's Bitcoin Holdings Surge to $5.2 Billion, Signaling Growing Institutional Adoption
New York, NY - In a significant development that underscores the growing institutional adoption of Bitcoin, Tether, the issuer of the USDT stablecoin, has reported holding over $5.2 billion worth of Bitcoin in the first quarter of 2023.
Tether's Bitcoin holdings experienced a substantial increase during the quarter, with the company adding $627 million worth of the cryptocurrency (8,888 BTC). This brings Tether's total Bitcoin holdings to 75,354 BTC (approximately $800 billion), positioning the company as the fourth-largest holder of Bitcoin among both listed and unlisted companies, behind only Block.one (140,000 BTC).
Among listed companies, MicroStrategy maintains its dominance as the largest holder of Bitcoin, with a stockpile of 214,246 BTC. This substantial accumulation of Bitcoin has led some analysts to speculate that the true price of Bitcoin, as estimated from MicroStrategy's stock price, could exceed $170,000.
Tether first disclosed its Bitcoin holdings in May 2023 as part of its certification report for the first quarter of that year. At the time, the company announced its intention to allocate up to 15% of its quarterly profits to Bitcoin purchases, aiming to diversify its USDT backing assets away from US Treasuries.
Tether's USDT business reportedly generated $5.4 billion in excess backing (assets with more than 100% backing) in 2023, contributing to the company's ability to increase its Bitcoin holdings. In addition to its core stablecoin operations, Tether has recently ventured into the realm of artificial intelligence (AI), announcing plans to develop open source multimodal AI models aimed at fostering innovation and accessibility in AI technology.
The substantial increase in Tether's Bitcoin holdings is a testament to the growing institutional recognition of Bitcoin as a legitimate asset class. This development further strengthens the case for Bitcoin's long-term viability and its potential to attract additional institutional investors seeking exposure to the cryptocurrency market.
