In a strategic move, Tether, the issuer of the popular USDT stablecoin, has expanded its Bitcoin reserves by acquiring 8,888 BTC, valued at $618 million, on March 31st. This acquisition has propelled Tether into the ranks of the seventh-largest Bitcoin holder globally.
With this purchase, Tether’s Bitcoin wallet now boasts a total of 75,354 BTC, acquired at an average price of $30,305, translating to a staggering value of approximately $5.2 billion at present, as per on-chain data analysis.
The timing of the acquisition coincides with a period of heightened institutional interest in Bitcoin, driven by the recent approval of spot Bitcoin exchange-traded funds in the United States and anticipation surrounding the impending Bitcoin halving event, set to slash block supply issuance by half in just 19 days.
Following the acquisition, Tether emerges as a significant player in the Bitcoin market, now ranking among the top holders globally. Notably, Binance’s cold wallet remains the largest Bitcoin holder, with holdings surpassing 248,597 BTC valued at $17.31 billion.
In a bid to diversify the backing assets of its stablecoin, Tether has announced plans to allocate 15% of its net profit towards Bitcoin investment.
Meanwhile, Tether’s USDT has achieved a milestone, reaching a market capitalization of $100 billion on March 4th, marking a notable 9% year-to-date growth.
Bitcoin’s current price trajectory appears resilient, trading above the $69,000 mark despite experiencing a minor 1.23% dip in the past 24 hours. Analysts suggest that Bitcoin’s recent consolidation above its previous all-time high of $69,000 indicates a potential end to its pre-halving correction phase.
Basile Maire, co-founder of D8X decentralized exchange and former UBS executive, notes that while Bitcoin has demonstrated impressive price action, the full impact of the upcoming halving event may not yet be fully priced in.
Additionally, Bitcoin has made history by closing seven consecutive monthly green candles for the first time ever, highlighting its sustained bullish momentum in the market.
