Tether adds 8,888 BTC worth $600 million to Bitcoin Treasury, on-chain data shows

Stablecoin issuer Tether has significantly expanded its Bitcoin holdings, acquiring 8,888 BTC worth approximately $600 million. This purchase was revealed through on-chain data rather than an official announcement.

Tether has not released its Bitcoin addresses publicly. However, according to transactions tracked on the blockchain, 8,888 BTC was recently transferred from cryptocurrency exchange Bitfinex to an undisclosed Tether wallet.

The recipient address currently holds over 75,000 BTC worth $5.3 billion. In May 2023, Tether first revealed that it planned to allocate a portion of its reserves to Bitcoin and invest up to 15% of its quarterly profits.

Announcing the Bitcoin strategy, Tether CTO Paolo Ardoino said, “The decision to invest in Bitcoin, the world’s first and largest cryptocurrency, is driven by the strength and potential of Bitcoin as an investment asset. “It is supported,” he said.

Although not confirmed, analysts believe the identified wallets likely belong to Tether. This amount is perfectly consistent with our committed purchasing strategy and the reserves claimed in our latest financial reports.

Tether has emerged as a major player in the Bitcoin market and its accumulation race. The company is currently estimated to be the 7th largest holder of BTC. Combined with steady buying from institutional investors like MicroStrategy, this strengthens supply.

Critics have raised concerns about Tether’s lack of transparency and potential market risks from increased Bitcoin storage. However, the acceptance of Bitcoin shows that mainstream acceptance of the asset is expanding.

Tether aims to leverage Bitcoin’s growth while diversifying its reserves away from traditional assets such as government debt. Tether is one of the world’s largest holders of US Treasury bonds.

This $600 million acquisition likely won’t be Tether’s last. As stablecoin leaders continue to execute their Bitcoin investment strategies, their influence on the Bitcoin market will only grow.