Tether, the leading stablecoin issuer, has announced that its bitcoin holdings have crossed the $5 billion mark after a significant purchase of $627 million worth of bitcoins in the first quarter of 2024. With this latest acquisition, Tether now holds approximately 75,354 bitcoins, valued at over $5.2 billion. This milestone coincides with bitcoin reaching an all-time high this year, currently trading at around $69,500.
While Tether has not publicly disclosed its Bitcoin addresses, The Block confirmed last year the existence of Tether’s one Bitcoin address, which has been consistently accumulating bitcoins every quarter since September 2022. Tether’s increased holdings have propelled it to become the seventh-largest holder of bitcoin, up from its previous rank of 11 earlier this year.
Tether CEO Paolo Ardoino confirmed the company’s latest bitcoin purchase, revealing that 8,888 bitcoins were acquired throughout the first quarter. Ardoino clarified that the purchase was made gradually over the quarter and settled at the end, with one significant purchase recorded on March 31.
Tether initially disclosed its bitcoin holdings in May 2023, stating its intention to allocate up to 15% of its profits each quarter to purchasing bitcoins. This strategic shift reflects Tether’s commitment to diversifying its stablecoin reserves away from U.S. government debt and towards cryptocurrencies.
In addition to its direct investments in bitcoin, Tether is actively involved in bitcoin mining and energy production. The company has also expanded its operations into the AI space, aiming to pioneer the development of open-source, multimodal AI models to drive innovation and accessibility within the AI technology sector.
Tether’s core business remains the issuance of the USDT stablecoin, which has enabled the company to accumulate $5.4 billion worth of excess reserves as of December 31, 2023, according to its fourth-quarter attestation report. With a total USDT supply exceeding 109 billion, Tether remains the largest stablecoin issuer in the market.