Stablecoin

Bitcoin

Giant

You can also read this news on BH NEWS: <a href="https://en.bitcoinhaber.net/stablecoin-giant-tether-bolsters-bitcoin-reserves-amid-market-uncertainty" rel="noopener noreferrer nofollow">Stablecoin Giant Tether Bolsters Bitcoin Reserves Amid Market Uncertainty</a> 
The leading cryptocurrency has been experiencing a period reminiscent of last year’s stagnant days, raising concerns of potential downturns that historically followed such inactive spells. Nevertheless, some companies remain eager to further intertwine their fate with Bitcoin, regardless of price fluctuations.
Stablecoin issuer <a href="https://en.bitcoinhaber.net/the-evolution-of-tether-a-story-of-innovation-resilience-and-determination" rel="noopener noreferrer nofollow">Tether</a> has recently increased its Bitcoin holdings by $380 million, bringing its total reserves to 66,645 BTC, valued at $2.8 billion. This accumulation strategy has been consistent every quarter since their initial purchase in September 2022. Their recent acquisition in March 2023 was the second-largest, with 15,915 BTC, demonstrating the company’s strong belief in Bitcoin.
Despite the positive outlook, bolstering reserves with BTC reminds some of Terra’s 2022 debacle, where a flawed peg mechanism led to significant market upheaval before the company’s collapse. However, Tether’s approach differs as it utilizes surplus reserves to purchase Bitcoin, not relying on a pegged mechanism.
Tether’s CEO Paolo Ardoino had previously stated the company would invest up to 15% of its quarterly profits into Bitcoin. Tether, the largest stablecoin by market value, has faced numerous challenges but has shifted risk assets in its reserves to safer bonds and taken steps to comply with audits.
Additionally, Tether has committed to investing up to half a billion dollars in Bitcoin mining. While no new purchases have been disclosed since the last confirmed BTC address, the next quarterly report might reveal further diversification, possibly including ETFs.
<h5>The post first appeared on BH NEWS: <a href="https://en.bitcoinhaber.net/stablecoin-giant-tether-bolsters-bitcoin-reserves-amid-market-uncertainty" rel="noopener noreferrer nofollow">Stablecoin Giant Tether Bolsters Bitcoin Reserves Amid Market Uncertainty</a></h5>

Stablecoin Giant Tether Bolsters Bitcoin Reserves Amid Market Uncertainty

BH NEWS

Other articles published on Jan 18, 2024

COTI Launches Ecosystem Fund to Power Ethereum Privacy

Shanghai Court Issues Verdict in First Digital Yuan Money Laundering Case

Bitcoin’s Price Dynamics and Market Outlook

Binance – Christiano Ronaldo elusive in face of collective lawsuit

Bitwise’s BITB Moves Up in ETF Value Rankings with $63 Million Bitcoin Token Purchase

Get access to an exclusive $MCRT staking offer with 100% APR & Genesis NFTs rewards

Join our free newsletter for daily crypto updates!