Tether (USDT) Continues to Accumulate Bitcoin (BTC) Reserves, Now Holds 82,983 BTC

Tether has transferred 7,629 BTC, valued at approximately $700 million, to its Bitcoin reserve address. This marks the largest addition to Tether's strategic Bitcoin reserve since March 2024, when 8,888.88 BTC were moved.

Stablecoin issuer Tether has made two large on-chain transfers, each amounting to 7,629 BTC. The transactions were executed on December 30 and 31, respectively, and the funds were moved to Tether's known Bitcoin reserve addresses.

The transfers, valued at approximately $700 million, were part of a series of on-chain movements from Bitfinex's hot wallet. The transactions were flagged by Arkham data, which also indicated that Tether's reserves now hold 82,983 BTC, acquired for $2.99 billion at an average cost of around $36,125 per coin.

This aligns with Tether's decision in 2023 to allocate up to 15% of its profits to Bitcoin. Tether's flagship stablecoin, USDT, is primarily backed by US Treasury bonds and cash-equivalent assets.

The yield generated from these holdings has fueled investments in various sectors, including AI, Bitcoin mining, and decentralized communications. In 2024, Tether's investment strategy expanded into renewable energy and telecommunications.

According to the latest data from CoinGecko, Tether has over $7.6 billion in BTC holdings, which were acquired as part of a diversification strategy amid periods of increased USDT issuance.

The stablecoin is pegged on a 1:1 basis with the US dollar and serves as a medium of exchange for traders and investors seeking to preserve their capital during periods of market volatility or regulatory uncertainty.

Tether's total assets reached $134.4 billion in Q3 of 2024, with $120 billion in circulating USDT. On December 6, the company minted an additional 2 billion USDT, bringing the total minted since November to 19 billion.

This reflected the growing demand for USDT throughout the bull market. However, Tether is facing challenges in the European Union as MiCA regulations take effect.

As a result, EU exchanges have delisted USDT in recent weeks. The move has sparked reactions from industry influencers and highlighted the tensions between stablecoin issuers and regulators.

Moreover, Tether has ceased issuing its euro-backed EURT stablecoin, offering holders a year to redeem their assets. Increased competition has further tested Tether's dominance.

Most recently, Ripple launched its RLUSD stablecoin in global markets, while USDC issuer Circle announced several partnerships aimed at leveraging Tether's regulatory hurdles.