Tether Buys 960 Bitcoin Worth $98 Million Stablecoin Issuer Doubles Down on BTC

Tether, the largest issuer of stablecoins in the world, has purchased more than 960 Bitcoin worth 98 million. It was announced by the Bitcoin historian Pete Rizzo on X. The acquisition was made when the price of Bitcoins was around 102,000 indicating that Tether made the purchase at a slight market decline. This will be a continuation of the step taken by the Tether Company to diversify its reserve asset. The company has already invested in Bitcoin several times since 2023 and uses its USDT activities to reinforce its reserves.

Tether Bitcoin Reserve worth $3.8 Billion

The Bitcoin strategy of Tether is not a new one. Its Q1 report on assurance in 2023 took care of the company and validated that it had deposited BTC in its reserves. It has been building up on a total of 3,000 BTC since then.Previously the company possessed approximately $ 2.8 billion in Bitcoin. This new purchase increases the number to an approximate of 3.8 billion. Tether under CEO Paolo Ardoino allocates a maximum of 15 percent of net realized profits to Bitcoin purchases in each quarter. This most recent addition also follows the trend and strengthens its reputation as a heavy Bitcoin reserve manager.

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It is interesting when Tether will make the purchase. The Crypto Fear and Greed Index fell to 19 (extreme fear) following this week of liquidations of $1.3 billion. Market analysts see the acquisition by Tether as a confidence vote in panic. Bitcoin is still at about 2 trillion market cap and its dominance of 59%. The action taken by Tether has the potential to favor the market sentiment since this strategy will be viewed by investors as a sign of a bullish attitude of an industry giant.

X traders reported that giants are piling, retail panicking. There is speculation this could be the short-term bottom of the price cycle of BTC. U.S. Treasuries and cash equivalents were formerly the primary reserves of Tether. As of 2023, it started investing in gold, Bitcoin, and equity in technology companies such as Northern Data AG. The company today has control over more than 118 billion as total reserves which are supported by stable assets. It is diversified to reduce the risk of the U.S dollar devaluation and keep the USDT pegged at $1.

Transparency and Criticism Issues

Critics are cautious, although optimistic. In 2021, Tether was fined by CFTC to the tune of 41 million dollars on misleading statements on its reserves. Other traders in X sneered at the news as they told of the possible depeg panic in case of lack of transparency. Tether however keeps on publishing quarterly attestations that have been verified by independent firms. Its official position is obvious, as Bitcoin will be one of the long-term holdings.

The current attempt by Tether to acquire Bitcoin in $98 million underpins the idea of the company as a key institutional buyer of BTC. The company is close to reserves of 3.8 billion in Bitcoin and still applies profits to diversify its financial base. Regulatory and market risk is still present, but the trend itself sends a lot of signals: despite the fear, Tether is purchasing Bitcoin.