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Tether Accumulates 7,629 BTC as USDT Supply Shrinks Amid Regulatory Pressure
In a recent development, cryptocurrency company Tether has added 7629 Bitcoin (BTC) worth $705 million to its reserves. This move comes amidst shrinking supply of the stablecoin USDT, which has dropped by over 1.1 billion in the past week.
As reported by Wu Blockchain, the newly acquired BTC was sourced from Bitfinex, and Tether’s total Bitcoin holdings now stand at an impressive 82983 BTC. At the current market price of $36,125 per Bitcoin, these reserves have a staggering valuation of $7.68 billion.
This significant increase in Tether’s Bitcoin investments marks a strategic shift for the company, which had remained inactive in the Bitcoin market for nine months prior to this latest acquisition. The move is seen as a response to regulatory pressures and challenges in the global market.
Tether has been actively investing in Bitcoin as part of its profit allocation strategy announced in May 2023. As per the plan, up to 15% of its net realized profits can be utilized to acquire BTC. This recent development appears to be a significant step towards fulfilling this goal.
The acquisition comes amid growing regulatory uncertainty and increased scrutiny from financial watchdogs. The company’s decision to diversify its portfolio by investing in Bitcoin may be an attempt to mitigate the impact of these challenges on its operations.
Tether has been working tirelessly to strengthen its position within the crypto market, and this move is seen as a crucial step towards achieving that goal. By increasing its exposure to BTC, Tether is positioning itself for potential growth opportunities and reducing its reliance on the volatile stablecoin market.
In conclusion, this latest development highlights Tether’s commitment to adapting to changing market conditions while maintaining a strong focus on securing its long-term prospects.
Source: cryptonewsland.com
