Tether Amplifies Its Bitcoin Portfolio, Acquiring Over 8,900 Additional BTC

By: Eva Baxter

The stablecoin issuer, Tether, has seen a significant amplification in its Bitcoin holding, currently constituting over 66,000 BTC, with a projected value surpassing $2.8 billion. Data reveals that Tether's BTC acquired an additional 8,900 BTC in Q4 2023, raising its total holdings from 57,500 at the beginning of the year to 66,400.

This strategic increment is part of Tether's plan to assign up to 15% of its realized investment gains towards acquiring BTC for its stablecoin reserves. An unidentified address, which is the 11th-largest Bitcoin holder and speculated to belong to Tether, has registered an unrealized profit of $1.1 billion.

Moreover, Tether is making notable strides in Bitcoin mining investments. In November 2023, Tether agreed to invest an estimated $500 million in Bitcoin mining over six months, intending to increase its percentage of the total computing power on the Bitcoin network to 1%. Tether is seeking to establish mining facilities in Uruguay, Paraguay, and El Salvador, each having a significant capacity of 40 to 70 megawatts.

Tether's USDT stablecoin has also observed a commendable surge over the past year, with its market capitalization growing by 38% from $66 billion to $91 billion, and reaching $95.08 billion as of the latest report. Despite the significant growth, Tether confirms meeting redemption demands with sufficient reserves.