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Tether Accumulates 7,629 BTC as USDT Supply Shrinks Amid Regulatory Pressure
In a move aimed at strengthening its reserves and future-proofing against regulatory challenges, Tether has been accumulating a massive 7,629 BTC worth $705 million from Bitfinex. This addition brings the company’s total Bitcoin holdings to an astonishing 82,983 BTC, valued at a staggering $7.68 billion.
This strategic decision comes amid a backdrop of uncertainty and regulatory pressure surrounding stablecoins like USDT. Data reveals that the circulating supply of USDT has plummeted by over 1.1 billion in recent times, further underscoring the need for Tether to diversify its portfolio.
Tether’s Bitcoin purchases have gained momentum since May 2023 when it announced a profit allocation strategy aimed at utilizing up to 15% of its net realized profits to acquire BTC. With this move, the company is solidifying its commitment to long-term stability and growth.
The Bitcoin reserves now hold an average price of $36,125 per coin, which translates to a massive valuation. It’s essential to note that Tether has not disclosed whether these purchases are being made in one lump sum or through gradual accumulation over time.
While some might argue that such massive investments could be seen as a contrarian play, experts believe it is an astute move by the company to safeguard its assets and maintain liquidity. As regulatory scrutiny intensifies, a diversified portfolio can significantly mitigate risk for Tether, ensuring a stable future for users and investors alike.
It remains to be seen how this development will impact the broader cryptocurrency market, but one thing is clear: Tether’s decisive action has sent a strong signal that it will not shy away from adapting to shifting regulatory landscapes.
Source: cryptonewsland.com
