Tether becomes seventh largest Bitcoin holder with recent $618 million purchase
Tether (USDT) is now the seventh-largest Bitcoin holder globally, following its purchase of more than 8,000 BTC in the past day, according to Bitinfocharts data.
On-chain data shows that the stablecoin issuer received approximately 8,889 BTC, valued at around $618 million, from a Bitfinex hot wallet on March 31. This purchase amplified Tether’s total Bitcoin holdings to approximately 75,354 BTC, valued at $5.23 billion.
The purchase places it directly above a wallet tagged as a Binance cold wallet by Arkham Intelligence, which holds 75,117 BTC worth $5.22 billion.
Tether now owns 0.3% of the flagship digital asset’s total circulating supply.
Tether’s BTC purchases
Over the past year, Tether has rapidly augmented its Bitcoin holdings through several quarterly purchases.
The company said its purchases are part of efforts to diversify its reserves, which include a substantial amount of gold, cash equivalents, and other short-term deposits.
Meanwhile, the recent acquisition arrives at a time of heightened institutional interest in the flagship digital asset. The surge in demand for BTC has been particularly notable since the year’s outset, fueled by the several spot Bitcoin exchange-traded funds (ETFs) in the United States and the impending Bitcoin halving event, poised to slash the asset’s inflationary rate substantially.
USDT dominance
Tether’s USDT remains the dominant stablecoin in the crypto industry, controlling 69% of the market with its circulating supply of $104 billion.
Despite its prominent position, Tether continues to face persistent regulatory hurdles. Recent reports indicate that US and UK authorities are investigating crypto transactions involving $20 billion USDT facilitated through a Russian exchange.
Moreover, due to regulatory constraints, OKX delisted the digital asset for its European clients. There are suggestions that the exchange’s decision was linked to the forthcoming Markets in Crypto-Assets (MiCA) framework.
Furthermore, JPMorgan has sounded a cautionary note, expressing concerns that Tether’s stablecoin market dominance could impede the broader growth of the crypto industry.
Nonetheless, Tether, led by its CEO Paolo Ardoino, remains steadfast in emphasizing its commitment to compliance and ongoing efforts.
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