Tether, the issuer of the largest fiat-backed stablecoin, has transferred 7,629 BTC—valued at approximately $700 million—to its strategic Bitcoin reserve account. Onchain data from Arkham Intelligence shows the transaction originated from Bitfinex’s hot wallet and was completed around 14:00 UTC.
This marks Tether’s largest Bitcoin transfer to its reserve since March 2024, when the firm moved 8,888.88 BTC, mirroring a similar transaction on the last day of 2023. Tether initiated its Bitcoin allocation strategy in May 2023, committing up to 15% of its profits to Bitcoin holdings. The company now holds over $7.6 billion worth of Bitcoin, amounting to more than 82,000 coins.
The move is part of Tether’s broader strategy to diversify its asset base. While its USDT stablecoin remains primarily backed by U.S. Treasury bonds and cash equivalents, the firm has been reinvesting its profits into emerging sectors like AI, Bitcoin mining, and decentralized communications. This diversification aligns with a year of exceptional profitability; Tether reported a record $5.2 billion in profits during the first half of 2024.
Monday’s transaction is not yet reflected on Tether’s transparency page, which was last updated on December 30, 2024. The company continues to use Bitcoin as a key component of its reserve strategy, signaling strong confidence in the asset’s long-term potential.