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Tether Expands Bitcoin Holdings with $705M Purchase as MiCA Deadline Looms
12/31/2024 03:51
Tether acquires 8,400 BTC worth $705M via Bitfinex, expanding Bitcoin holdings to 83,758 BTC amid upcoming MiCA regulations and USDT supply changes.
Key Notes
- Tether continues its 15% profit-to-Bitcoin allocation strategy, accumulating 82,983 BTC at an average price of $36,125.
- The strategic expansion occurs despite regulatory uncertainty surrounding MiCA implementation.
- The company diversifies investment focus beyond Bitcoin into AI and emerging trends while maintaining stablecoin operations.
After several months of dormancy, leading stablecoin issuer Tether has received 7,629 BTC (approximately $705.25M) through Bitfinex. A few hours after this big BTC purchase, onchain data from Arkham showed an additional accumulation of 775.568 BTC $94 475 24h volatility: 0.9% Market cap: $1.87 T Vol. 24h: $52.62 B on the same address, marking a total purchase of over 8,400 BTC on Dec 30.
With this significant acquisition, Tether has accumulated about 83,758 BTC and boasts a Bitcoin reserve worth over $7.8 billion. Further data shows that this stablecoin issuer now holds more Bitcoin than its US dollar stablecoin, as its portfolio reflects a total of $6 billion worth of USDT.
Tether Commits 15% of Profits to Bitcoin
While Tether also made a big buy on Bitcoin during the same period last year, the stablecoin issuer appears committed to periodically committing a specific portion of its profits to Bitcoin.
It announced in May 2023 that it would start allocating up to 15% of its earnings to Bitcoin to diversify its portfolio and income streams. The company has continued to make efforts to implement this plan, and it has now accumulated 82,983 BTC for $2.99B at an average price of $36,125.
While this move reflects Tether’s confidence in Bitcoin’s potential, the company also has its eyes on other sectors. Apart from Bitcoin, the company revealed that it is also investing its earnings in the AI ecosystem and other booming trends.
Tether Expands Bitcoin Treasury Amid Regulatory Saga with MiCA
Tether’s latest Bitcoin acquisition demonstrates the company’s commitment to expansion, even as it navigates regulatory challenges with the European Union’s Markets in Crypto-Assets (MiCA) framework.
The implementation of MiCA regulations on Monday has sparked market uncertainty around the Tether ecosystem, with analysts speculating about potential impacts on the stablecoin’s operations within European markets.
While USDT maintains robust trading volumes across global exchanges, market data from the past week indicates a notable decrease in its circulating supply as participants monitor the stablecoin’s response to evolving regulatory requirements. Will other stablecoin issuers follow Tether’s Bitcoin strategy?
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