Tether buys $1B in Bitcoin, boosting reserves during market dip

Source Cryptopolitan

Tether, the issuer of the USDT stablecoin, has increased its Bitcoin reserve holdings after performing two large transactions from Bitfinex’s hot wallets to its Bitcoin reserve wallet. Based on on-chain data, the issuer transferred roughly $1 billion, increasing its reserve holdings to 87,296 BTC, which makes it the sixth largest Bitcoin holder globally. 

According to public on-chain data by Arkham Intelligence, Tether withdrew roughly 961 BTC valued at $97.18 million first. Shortly after, the firm transferred another 8,888 BTC, approximately $1 billion, from Bitfinex, which is owned by Tether, to its Bitcoin reserve address. So far, Tether’s Bitcoin reserve wallet holds 87,296 BTC, valued at $8.9 billion, and ranks the stablecoin issuer as the sixth-largest Bitcoin reserve company. 

Tether USDT buys into the dip after a short-term pullback in BTC price

Tether’s strategy since 2023 includes allocating 15% of its net profits into Bitcoin reserve allocation. The USDT issuer uses the reserve as a hedge against inflation and to strengthen its balance sheet. The recent transfer mid-quarter, unlike the firm’s trend of allocating BTC to the reserve address at the end of each quarter, signifies a potential buy into the dip.

At the beginning of this week, BTC traded below $100,000, marking a short-term pullback following a sustained outflow from BTC and ETH ETFs. Bitcoin has so far regained roughly 3% from the dip, currently trading above $102,000. At the time of publication, the token was up 1.65% trading at $102,065. Tether’s recent transfer to its reserve showed its long-term confidence in Bitcoin assets despite the short-term drop. 

The USDT issuer’s total holdings have increased to 87,296 BTC, worth approximately $8.9 billion based on the current market price. The issuer’s reserve has claimed the sixth position globally as a Bitcoin holder among other firms accumulating BTC, including MicroStrategy, Galaxy Digital, and several exchange-linked cold wallets. Tether is also ranked as the second-largest holder among private entities, just behind Block.one, which currently holds 140,000 BTC.

Based on on-chain data, Tether’s average acquisition price of its total BTC in the reserve portfolio is roughly $49,121 per BTC. This means, at the current price levels, the firm’s unrealized profit is approximately $4.55 billion. 

Tether’s BTC unrealized profits jump to $4.55 billion

According to data delivered by Bitcoin Treasuries, Strategy is the largest holder so far, with 641,205 BTC valued at approximately $65.39 billion, representing 3.053% of BTC’s total supply. ETFs constitute the largest holders of BTC, with approximately 7% of the total supply, or 1,534,219 BTC. 

Tether’s USDT currently has a total market capitalization of $183.3 billion, making it the largest stablecoin issuer, surpassing Circle’s USDC, which has a market capitalization of $75 billion. Most of USDT’s supply is concentrated on the Ethereum and Tron blockchains, with 47.92% and 42.08%, respectively. 

According to a recent Cryptopolitan report, Tether’s attestation report showed a record net profit of over $10 billion by the end of September. Reserves accounted for roughly $181.2 billion at the end of Q3, and liabilities were $174.4 billion, resulting in an excess of $6.8 billion. 

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