Tether’s Bitcoin Reserves Grow with $700M BTC Transfer
Tether has transferred 7,629 BTC (worth approximately $700 million) to its Bitcoin reserve address. The transaction originated from Bitfinex’s hot wallet on the morning of December 30.
This is the largest increase in Tether’s strategic Bitcoin reserves since March 2024, when 8,888.88 BTC was transferred.
Tether’s Bitcoin reserves continue to grow
Another identical transfer occurred on December 31, 2023, based on on the chain data. according to arkham dataTether’s reserves currently hold 82,983 BTC, acquired for $2.99 billion, with an average cost per coin of approximately $36,125.
The move is in line with Tether’s decision to allocate 15% of its profits to Bitcoin in 2023. The company currently holds over $7.6 billion in BTC, and its Bitcoin purchase As part of a diversification strategy during an increase in USDT issuance.
tethered bannerIstablecoinUSDT, remains primarily backed by U.S. Treasuries and cash equivalents. The income generated by these assets drives investment in emerging industries, including artificial intelligence, Bitcoin mining, and decentralized communications.
In 2024, the company will also expand into renewable energy and telecommunications, reflecting its broad investment focus.
Strong fiscal year amid regulatory hurdles
Tether has seen huge financial success in 2024, supported by a strong cryptocurrency market. corporate Total assets reached US$134.4 billion in the third quarterUSDT 120 billion is in circulation.
In addition, on December 6, Tether issues an additional 2 billion USDTa total of 19 billion have been minted since November. This reflects the growing demand for USDT throughout the bull market.
However, Tether faces challenges in the EU: Mika regulations Take effect. European Union The exchange has delisted USDT Preparations for regulation have been underway in recent weeks.
“Remember, Tether holds $102 billion in U.S. Treasuries – the EU does not recognize this collateral, sending a strong signal of lack of trust in U.S. debt. The EU explicitly requires Stablecoin Issuer backs EU-regulated stablecoin with 60% fiat in EU banks. IMO: There is a political motivation behind this riddle. This ends badly for the EU,” influencer Martin Folb Wrote on X (formerly Twitter).
In addition, the company also has Stop issuing euro-backed EURT stablecoingiving holders one year to redeem their assets. Increasing competition further tests Tether’s dominance.
recent, Ripple launches RLUSD stablecoin In the global market, USDC issuers Circle announces multiple partnerships Designed to take advantage of Tether’s regulatory hurdles.
Despite these challenges, Tether remains focused on strengthening its reserves and exploring new territories, maintaining its position as a key player in the stablecoin market.
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