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Tether Boosts Bitcoin Reserves with $735M Purchase
In a significant move, Tether has bolstered its Bitcoin reserves by pouring in $735 million to acquire 8,888 BTC. This substantial purchase catapults the stablecoin issuer into the sixth position among the largest Bitcoin holders globally.
According to data from Spot On Chain, the acquisition brings Tether’s total holdings of the flagship cryptocurrency to an impressive 92,647 BTC. At current market prices, this stash is valued at approximately $7.64 billion.
It’s worth noting that Tether continued its accumulation strategy despite a significant decline in Bitcoin’s value during the first quarter of 2025. The price drop was staggering, with a 12% decrease – the worst quarterly performance in seven years. This unwavering commitment to its investment plan underscores Tether’s dedication to strengthening and diversifying its holdings.
The company’s strategy revolves around gradually acquiring assets throughout the period and settling them at the end, while also aiming to hold Bitcoin as a treasury asset. Furthermore, Tether is expanding into emerging sectors such as AI, Bitcoin mining, and decentralized communications.
As competition within the stablecoin market intensifies, this purchase serves as a bold statement from Tether. The recent launch of RLUSD by Ripple and Circle’s expansion in Europe following Tether’s reduced role due to MiCA regulations could be seen as an opportunity for the company to capitalize on its dominance.
In other news, sources indicate that Circle is preparing to file for an initial public offering (IPO) in late April 2025, with JPMorgan and Citi set to lead the offering. This development could potentially see Circle’s stock debut on Wall Street as early as May, with a projected valuation between $4 and $5 billion.
Moreover, Tether is reportedly considering expanding its presence within the United States. In January, CEO Paolo Ardoino hinted at improving market conditions and a favorable regulatory environment, leading him to reevaluate the company’s US strategy. This move follows Tether’s relocation of operations to El Salvador in response to the country’s pro-Bitcoin stance.
The financials are also looking rosy for Tether, having reported a record $2.5 billion profit in Q3 2024, accompanied by total earnings of $7.7 billion for that year. The company’s market capitalization witnessed an impressive 30% growth throughout 2024, reaching a staggering 120 billion.
In conclusion, this substantial purchase by Tether underscores its commitment to Bitcoin and the broader cryptocurrency space.
Source: https://cryptopotato.com/tether-boosts-bitcoin-reserves-with-735m-purchase/
