Tether has reaffirmed its commitment to Bitcoin as its main reserve asset with a recent acquisition—a $1 billion investment that raises its total holdings to $9.7 billion, coinciding with a significant increase in USDT supply.
Summary
- Tether acquired 8,889 BTC valued at $1 billion in Q3, bringing its total reserves to $9.7 billion.
- This aligns with Tether’s trend of Bitcoin purchases at the end of each quarter.
- With USDT supply approaching $175 billion, Tether strengthens its leadership in the stablecoin market.
As of September 30, on-chain data indicated that a Tether-tagged wallet received 8,889 Bitcoin (BTC), approximately valued at $1 billion, in a transaction timed with the close of Q3.
This purchase, originating from a wallet linked to Bitfinex, continues a trend of end-quarter reserve enhancements that Tether has maintained for over a year, pushing its total disclosed Bitcoin holdings to about $9.7 billion.
Bitcoin Central to Tether’s Reserve Strategy
This latest acquisition directly reflects Tether’s policy announced in 2023 to allocate up to 15% of its net realized operating profits for Bitcoin purchases. The stablecoin leader views this strategy as a means to diversify the reserves backing USDT’s peg to the U.S. dollar.
While Bitcoin is not the exclusive backing for USDT, its increasing significance on Tether’s balance sheet underscores the company’s perspective that Bitcoin acts as a safeguard against conventional market uncertainties. By incorporating non-sovereign, hard assets alongside cash and equivalents, Tether aims for Bitcoin to serve as a long-term buffer against inflation and risks related to sovereign debt.
This distinction is crucial as USDT, with nearly $175 billion circulating, now represents the largest reservoir of dollar liquidity in the cryptocurrency landscape. For comparison, USDT’s closest competitor, Circle’s USDC, reported a market cap of $73 billion as of the latest data from crypto.news.
In addition to its treasury acquisitions, Tether is enhancing its involvement in the wider Bitcoin ecosystem through strategic financial allocations. Earlier this year, Tether reportedly invested over $1.4 billion in Bitcoin in Twenty One Capital, a treasury-management firm led by Strike CEO Jack Mallers, where Tether holds a leading investment position.
