Tether Adds 8,888 Bitcoin to Reserves Bringing Total Holdings to 96,369 BTC

Key Insights:

  • Tether now holds 96,369 Bitcoin after adding 8,888 BTC to its balance sheet.
  • This move is part of Tether’s ongoing strategy to accumulate Bitcoin.
  • Tether is positioning Bitcoin as a reserve asset, not just for trading purposes.
  • Bitcoin supply on exchanges tightens as stablecoin issuers increase long-term holdings.

Tether Acquires 8,888 Bitcoin During Market Consolidation

Tether, the largest stablecoin issuer, has increased its Bitcoin holdings by 8,888 BTC. The purchase raises its total to 96,369 BTC. This was confirmed by on-chain data and public wallet tracking.

The acquisition comes as the Bitcoin market remains within a tight trading range. The price of Bitcoin has moved sideways over recent weeks. This suggests Tether is adding to its holdings during a period of low volatility and not during a sharp price surge.

Bitcoin Treated as a Reserve Asset by Stablecoin Issuer

This purchase is not part of any trading activity. Instead, it reflects a long-term balance sheet strategy. Tether has publicly stated before that it holds Bitcoin as part of its reserves.

The company is using Bitcoin as a store of value, much like traditional institutions hold gold. According to Tether executives, this approach is aimed at strengthening the company’s reserves with assets that have a limited supply.

Tether has been adding Bitcoin in batches over the past year. It was previously revealed that a portion of its profits from USDT issuance would be used to buy BTC. With each addition, it reduces the available supply of Bitcoin on the market.

Bitcoin Holdings by Institutions Continue to Grow

Tether’s increased Bitcoin exposure places it among the largest known institutional holders. Other companies, like MicroStrategy and Tesla, also hold Bitcoin on their balance sheets. But Tether’s position is notable due to its role in the stablecoin market.

This development shows that stablecoins are not only backed by tokens with cash or cash equivalents. Instead, some are choosing to diversify with Bitcoin, as market observers say this could reduce the amount of BTC available for trading.

While some investors are still cautious, institutional holders appear to be securing positions ahead of possible future movements.