Key Points
- Tether’s Bitcoin holdings have crossed the $5 billion mark after purchasing an additional $627 million worth of Bitcoin in Q1 2024.
- Tether is also involved in Bitcoin mining and energy production, and has recently ventured into the AI technology sector.
Stablecoin issuer Tether has increased its Bitcoin holdings by $627 million in the first quarter of 2024, pushing the total value of its holdings to over $5.2 billion. This is the first instance that Tether’s Bitcoin holdings have exceeded the $5 billion threshold, aligning with Bitcoin’s record high this year, with its current trading value around $69,500.
Bitcoin Accumulation and Expansion
Tether has not officially disclosed its Bitcoin addresses, but it was confirmed last year that one Bitcoin address owned by Tether has been regularly acquiring Bitcoin since September 2022. With the recent Q1 purchase, Tether has climbed from the 11th to the 7th largest holder of Bitcoin.
When reached for comment, Tether CEO Paolo Ardoino confirmed that the company had indeed bought more Bitcoin, detailing that the acquisition of 8,888 Bitcoin took place throughout the first quarter. “It was bought over the full quarter, then settled at the end,” Ardoino explained, as the address shows a single purchase on March 31.
Investment Strategy and Business Operations
Tether first revealed its Bitcoin holdings in May 2023 in its Q1 attestation report for that year. The company stated that it would buy Bitcoin with up to 15% of its quarterly profits as it transitions its stablecoin reserves from U.S. government debt to cryptocurrency.
In addition to direct Bitcoin investments, Tether is also active in the Bitcoin mining and energy production sectors. The company recently announced its foray into the AI space, stating its goal “to pioneer the development of open-source, multimodal AI models to set new industry standards, driving innovation and accessibility within AI technology.”
Tether’s main operation is managing the USDT stablecoin, which yielded $5.4 billion in excess reserves as of December 31, 2023, according to the company’s latest Q4 attestation report released earlier this year. Tether continues to be the largest issuer of stablecoins, with the total USDT supply exceeding 109 billion.
