USDT aka Tether Becomes 7th Largest Bitcoin Holder

Tether’s Strategic Expansion: Becoming a Bitcoin Behemoth and Beyond

April 2nd, 2024 —

In a significant development, Tether (USDt) announced its position as the seventh-largest Bitcoin holder globally, underscoring the burgeoning popularity of stablecoins and their utilization in Tether casinos. This move highlights Tether’s commitment to ensuring its robust presence in the cryptocurrency domain.

On March 31, Tether, the powerhouse behind the USDT stablecoin, made waves in the crypto community by acquiring an additional 8,888 Bitcoins. This bold purchase, valued at $618 million, elevated Tether’s Bitcoin holdings to 75,354, securing an average buy-in rate of $30,305 and showcasing the firm’s confidence in Bitcoin’s valuation and its substantial financial reserves.

This investment not only solidified Tether’s significant stake in the Bitcoin market but also aligned with its strategic vision of diversifying its asset base beyond traditional stablecoin backing. Unlike other stablecoin protocols, such as the defunct Terra Luna, Tether maintains a robust backing for its stablecoins, with 84.58% in cash, cash equivalents, and short-term deposits, complemented by investments in precious metals, Bitcoin, and secured loans. Since 2023, Tether has been strategically investing in Bitcoin using its realized profits, as announced by Paolo Ardoino, CTO of Tether.

The move is indicative of Tether’s aggressive investment strategy amid growing institutional interest in Bitcoin, situating it among the top Bitcoin holders globally, trailing only behind corporate giants like MicroStrategy, Bitfinex, and Binance.

Tether’s investment in Bitcoin coincides with pivotal market developments, including the approval of U.S.-based spot Bitcoin ETFs and the anticipation of the Bitcoin halving event, poised to reduce block supply issuance by half. Paolo Ardoino remarked on the decision to invest in Bitcoin, highlighting its potential and strength as an investment asset.

Furthermore, Tether’s venture into the world of Tether casinos is gaining traction, offering users the option to bet on various games and sports using Tether, with some sites providing substantial deposit bonuses.

In Lugano, Switzerland, Tether’s influence extends to the adoption of cryptocurrency in daily transactions, where over 15% of citizens use the city’s LVGA stablecoin. Supported by Bitfinex and leveraging platforms like the Lightning Network, Lugano exemplifies cryptocurrency’s integration into urban life, with plans to increase crypto-accepting stores to 2,000.

Parallel to Tether’s maneuvers, Bitcoin staking has surged in popularity, particularly with the Lorenzo Protocol’s integration with Babylon to enhance Bitcoin’s application layer, facilitating smart contract execution and offering secure, decentralized Bitcoin Layer 2 solutions.

As Tether cements its position as a key Bitcoin holder, its strategic investments ahead of the Bitcoin halving event exemplify a sophisticated approach to capitalizing on market opportunities, aiming for long-term capital growth.