2024

Kling

Bitcoin

Million

Source: AdobeStock 
The world’s largest stablecoin issuer, Tether, has reportedly expanded its Bitcoin holdings by acquiring an additional 8,888 BTC. This latest purchase cost a whopping $380 million. 
You cannot overstate how crucial this is for Bitcoin price discovery. Tether is earning ~$1bn/Q in interest and then firing as much of that as they want into BTC. Most powerful entity in crypto by far. 
** TETHER BOUGHT $380MM OF BITCOIN IN Q4, NOW OWNS $2.8BN** 
— Travis Kling (@Travis_Kling) <a href="https://twitter.com/Travis_Kling/status/1748021306644430909?ref_src=twsrc%5Etfw">January 18, 2024</a> 
This transaction, captured by <a href="https://bitinfocharts.com/bitcoin/address/bc1qjasf9z3h7w3jspkhtgatgpyvvzgpa2wwd2lr0eh5tx44reyn2k7sfc27a4">BitInfoCharts data</a>, took place on December 31, 2023. With this latest acquisition, Tether’s total <a href="https://cryptonews.com/news/bitcoin-price-prediction-as-billionaire-michael-saylors-btc-holdings-surpass-2-billion-in-profit-time-to-buy.htm">BTC holdings</a> have reached an impressive 66,465.20. 
According to <a href="https://dune.com/queries/2233363/3661581">Dune Analytics data</a>, Tether’s holdings position it as the 11th largest Bitcoin holder, boasting a grand fiat valuation slightly exceeding $2.8 billion. 
The stablecoin issuer has openly expressed its intent to incorporate Bitcoin into its list of supported assets for USDT. In a May 2023 company release, Tether <a href="https://tether.to/en/tether-to-further-strengthen-reserves-through-purchase-of-bitcoin-with-realized-net-operating-profits">announced</a> a commitment to allocate 15% of its realized profits from investments to purchase Bitcoin and add the decentralized currency into its reserve basket. 
Pointing to its previous foray into the crypto space, Tether stated that it held $1.5 billion in BTC reserves as of its <a href="https://tether.to/en/tethers-latest-q1-2023-assurance-report-shows-reserves-surplus-at-all-time-high-of-244b-up-148b-in-net-profit-new-categories-for-additional-transparency-reveals-bitcoin-and-gold-allocations">Q1 2023 attestation report</a>. The USDT issuer cited a conservative and prudent approach to investment decisions as the motivation behind this move. 
The blockchain-focused tech firm aims to strengthen, expand, and diversify its reserves beyond traditional government bonds and cash-like assets, which typically back most of its stablecoin. 
Commenting on the decision, CEO Paolo Ardoino emphasized Bitcoin’s proven resilience, intrinsic capacity as a long-term value store, and widespread adoption, making it a compelling choice for Tether’s reserve surplus. 
Meanwhile, Tether custodies its <a href="https://cryptonews.com/news/crypto-miners-bitcoin-reserves-hit-lowest-level-since-may-amidst-increased-selling-pressure.htm">Bitcoin reserves</a> in-house, reiterating the popular Web3 slogan of “not your keys, not your coins.” 
<h2 id="tether-hits-back-at-un-report-cites-positive-aml-action">Tether Hits Back At UN Report, Cites Positive AML Action</h2> 
 Besides Bitcoin, the USDT stablecoin maker holds $72.6 billion in US government bonds, $3.4 billion in gold, and other cash-like assets, according to its <a href="https://tether.to/en/tether-q3-attestation-reveals-highest-percentage-of-cash-and-cash-equivalent-reserves-over-330m-reduction-in-secured-loans-and-maintains-726b-exposure-in-us-t-bills/">latest attestation report</a>. 
Despite these holdings, the stablecoin issuer has faced scrutiny from regulatory bodies and financial authorities. According to a January 15 United Nations (UN) <a href="https://www.unodc.org/roseap/uploads/documents/Publications/2024/Casino_Underground_Banking_Report_2024.pdf">report</a>, Tether’s USDT stablecoin on the Tron blockchain was employed by cyber criminals to move illegal funds, predominantly in Asia and Southeast Asia. 
In response to the UN report, Tether expressed disappointment with the negative portrayal presented by the prestigious organization. 
In a <a href="https://tether.to/en/tether-challenges-un-report-and-calls-for-blockchain-education/">blog post</a>, the company pointed out that the report overlooked the vital role played by the fiat-backed stablecoin in fostering financial inclusion within underserved communities that the global financial ecosystem often deems not “profitable.” 
Tether Challenges UN Report and Calls for Blockchain Education 
Read more <a href="https://t.co/RM474wIiqo">https://t.co/RM474wIiqo</a> 
— Tether (@Tether_to) <a href="https://twitter.com/Tether_to/status/1746951246806655422?ref_src=twsrc%5Etfw">January 15, 2024</a> 
Tether also noted its extensive collaboration with local and international law enforcement agencies, including the US Department of Justice (DoJ) and the Federal Bureau of Investigation (FBI). 
The stablecoin issuer disclosed its involvement in freezing $300 million in illicitly obtained funds from cyber fraud activities. Furthermore, Tether advocated for a more robust educational system to address misconceptions surrounding <a href="https://cryptonews.com/news/how-blockchain-technology-bringing-novel-use-cases-educational-sector.htm">blockchain technology</a>.

Report: USDT-Issuer Tether Purchased 8,900 BTC, Worth $380 Million

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