Tether, the issuer of the USDT stablecoin, has increased its Bitcoin reserve holdings after performing two large transactions from Bitfinex’s hot wallets to its Bitcoin reserve wallet. Based on on-chain data, the issuer transferred roughly $1 billion, increasing its reserve holdings to 87,296 BTC, which makes it the sixth largest Bitcoin holder globally.
According to public on-chain data by Arkham Intelligence, Tether withdrew roughly 961 BTC valued at $97.18 million first. Shortly after, the firm transferred another 8,888 BTC, approximately $1 billion, from Bitfinex, which is owned by Tether, to its Bitcoin reserve address. So far, Tether’s Bitcoin reserve wallet holds 87,296 BTC, valued at $8.9 billion, and ranks the stablecoin issuer as the sixth-largest Bitcoin reserve company.
Tether USDT buys into the dip after a short-term pullback in BTC price
Tether’s strategy since 2023 includes allocating 15% of its net profits into Bitcoin reserve allocation. The USDT issuer uses the reserve as a hedge against inflation and to strengthen its balance sheet. The recent transfer mid-quarter, unlike the firm’s trend of allocating BTC to the reserve address at the end of each quarter, signifies a potential buy into the dip.
At the beginning of this week, BTC traded below $100,000, marking a short-term pullback following a sustained outflow from BTC and ETH ETFs. Bitcoin has so far regained roughly 3% from the dip, currently trading above $102,000. At the time of publication, the token was up 1.65% trading at $102,065. Tether’s recent transfer to its reserve showed its long-term confidence in Bitcoin assets despite the short-term drop.
The USDT issuer’s total holdings have increased to 87,296 BTC, worth approximately $8.9 billion based on the current market price. The issuer’s reserve has claimed the sixth position globally as a Bitcoin holder among other firms accumulating BTC, including MicroStrategy, Galaxy Digital, and several exchange-linked cold wallets. Tether is also ranked as the second-largest holder among private entities, just behind Block.one, which currently holds 140,000 BTC.
Based on on-chain data, Tether’s average acquisition price of its total BTC in the reserve portfolio is roughly $49,121 per BTC. This means, at the current price levels, the firm’s unrealized profit is approximately $4.55 billion.
Tether’s BTC unrealized profits jump to $4.55 billion
According to data delivered by Bitcoin Treasuries, Strategy is the largest holder so far, with 641,205 BTC valued at approximately $65.39 billion, representing 3.053% of BTC’s total supply. ETFs constitute the largest holders of BTC, with approximately 7% of the total supply, or 1,534,219 BTC.
Tether’s USDT currently has a total market capitalization of $183.3 billion, making it the largest stablecoin issuer, surpassing Circle’s USDC, which has a market capitalization of $75 billion. Most of USDT’s supply is concentrated on the Ethereum and Tron blockchains, with 47.92% and 42.08%, respectively.
According to a recent Cryptopolitan report, Tether’s attestation report showed a record net profit of over $10 billion by the end of September. Reserves accounted for roughly $181.2 billion at the end of Q3, and liabilities were $174.4 billion, resulting in an excess of $6.8 billion.
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