Tether, the issuer of the world’s largest stablecoin USDT, transferred 7,629 BTC (approximately $700 million) to its strategic Bitcoin reserve on Monday, according to data from Arkham Intelligence. The move brings Tether’s total Bitcoin holdings to 82,983 BTC, valued at approximately $7.68 billion at current prices.

The transfer marks the largest Bitcoin acquisition by Tether since March 2024 and is the third significant purchase this year. In April, the company acquired 8,888 BTC for $600 million, following a similar purchase in January. These acquisitions align with Tether’s May 2023 announcement to allocate up to 15% of its net profits toward Bitcoin reserves, a strategy aimed at diversifying its holdings and reinforcing its balance sheet.

"Bitcoin has consistently demonstrated its resilience, establishing itself as a long-term store of value with significant growth potential," said Paolo Ardoino, Tether’s Chief Technology Officer. He emphasized Bitcoin’s limited supply, decentralization, and growing adoption as reasons for its appeal to institutional investors.

While Tether continues its Bitcoin accumulation, its USDT stablecoin supply has decreased by over $1.1 billion in the past week. Analysts suggest this decline could be linked to Tether’s decision to avoid full compliance with Europe’s Markets in Crypto-Assets Regulation (MiCA), which has led some exchanges to delist USDT. This reduction in supply has slightly dampened liquidity in the cryptocurrency markets, with Bitcoin’s trading volume and price activity reflecting reduced market participation.

Tether’s Bitcoin acquisition underscores its focus on leveraging Bitcoin as a strategic asset. With its growing reserve, the company strengthens its financial position while exploring investments in emerging sectors like AI, Bitcoin mining, and decentralized communications.

The Block Article