Tether, the issuer of the USDT stablecoin, has executed a significant move as Tether increases Bitcoin reserves over the last 24 hours. The company transferred nearly 9,850 BTC, valued at approximately $1.09 billion. This operation was conducted from the Bitfinex platform, as revealed by public on-chain data.
The records show two primary transactions. First, a withdrawal of 961 BTC (about $97.18 million). Shortly after, a much larger block of 8,888 BTC (around $1 billion) was moved. Both transfers were directed to Tether’s official reserve address. With this addition, the firm’s reserve wallet now accumulates a total of 87,296 BTC, valued at $8.9 billion. This move elevates Tether to the sixth position among the largest Bitcoin holders worldwide. Furthermore, among private entities, it ranks second, only behind Block.one, which holds 140,000 BTC.
This acquisition is notable for its timing. Since 2023, Tether has allocated 15% of its net profits to buying Bitcoin as a hedge. However, these purchases typically occur at the end of each quarter. Making this purchase mid-quarter strongly suggests a “buy the dip” strategy. This occurs just after the price of BTC experienced a pullback earlier in the week, briefly trading below $100,000. The quick recovery above $102,000 validated this purchasing decision.
Is Tether signaling a new market floor?
Tether’s move reinforces its long-term confidence in the leading cryptocurrency, despite recent volatility. In fact, the purchase follows a streak of capital outflows from BTC and ETH ETFs. At the time of the purchase, Bitcoin was recovering from its dip. Currently, Tether is positioned as the sixth-largest BTC holder globally. Likewise, its finances show robust health. Tether’s average acquisition price is $49,121 per BTC, which places its unrealized profit at $4.55 billion.
Tether’s strategic action solidifies its balance sheet and sends a bullish message to the ecosystem. As Tether increases Bitcoin reserves, it establishes itself not only as the largest stablecoin issuer but also as a key corporate player in the BTC space. On the other hand, USDT’s market capitalization reaches $183.3 billion, far surpassing its competitor USDC. Analysts will be watching to see if this purchase boosts further confidence in the market and stabilizes current price levels above $102,000.
