Tether Moves $780 Million in Bitcoin to Its Reserve, Marking Largest Transfer in 9 Month

Tether, the issuer of the popular stablecoin USDT, has made its largest Bitcoin transfer in nearly nine months, moving close to $780 million worth of Bitcoin into its corporate reserve. This move comes as part of Tether's ongoing strategy to regularly allocate a portion of its profits into Bitcoin, as previously announced in May 2023.

On December 30, Tether transferred a total of 8,404.5 BTC, split into two separate transactions. According to Arkham Intelligence, the Bitcoin was transferred to wallets tagged for Tether’s Bitcoin reserve, with the first transfer amounting to approximately 7,628.9 BTC and the second at 775.6 BTC. At current prices, the total value of the Bitcoin added to Tether's reserve is approximately $777.4 million, based on Bitcoin's price of around $92,500.

This latest move brings Tether's total Bitcoin holdings to 83,759 BTC, valued at nearly $7.75 billion. Tether has previously stated that it plans to regularly allocate up to 15% of its net realized operating profits towards purchasing Bitcoin, further strengthening its reserve and reinforcing confidence in its stablecoin.

A Significant Move Since March

The recent Bitcoin addition is Tether's largest move since March 31, 2024, when the company added 8,888.88 BTC to its reserve following Bitcoin's surge above $70,000. Since then, Bitcoin has seen significant growth, doubling in value throughout 2024. Despite a slight dip in recent weeks, the cryptocurrency remains up more than 108% for the year, with a notable all-time high of approximately $108,000 in mid-December.

Tether’s Bitcoin holdings position it as one of the largest holders among privately-owned companies. It ranks second behind blockchain software firm Block.one, which holds 140,000 BTC. Overall, Tether’s Bitcoin reserve places it in third place globally, behind only MicroStrategy, which leads with a staggering 446,400 BTC in its treasury.

Corporate Bitcoin Treasuries Gain Popularity

Tether’s decision to expand its Bitcoin holdings reflects a growing trend among corporate entities adopting Bitcoin as part of their treasury strategy. As Bitcoin's price has risen throughout 2024, more companies are looking to add the cryptocurrency to their balance sheets in hopes of boosting their financial standing and share prices.

For instance, KULR Technology Group announced on December 16 that it had spent $21 million to acquire 217.18 BTC, resulting in a 40% surge in its stock price, which hit an all-time high of $4.80. Additionally, Quantum BioPharma, a biopharmaceutical company, revealed on December 20 that it had purchased $1 million worth of Bitcoin and other crypto assets as part of its diversification strategy.

As Bitcoin continues to gain momentum in 2024, more firms are expected to follow suit, incorporating the cryptocurrency into their financial strategies to bolster reserves and potentially increase shareholder value.

Tether’s Role in the Bitcoin Ecosystem

Tether’s substantial Bitcoin holdings underscore its significant role in the broader cryptocurrency ecosystem. As one of the largest private holders of Bitcoin, Tether’s moves could influence market sentiment and highlight the growing acceptance of Bitcoin as a legitimate asset class, not just for retail investors but also for institutional players and large corporations. The addition of nearly $780 million in Bitcoin further solidifies Tether’s position as a key player in the crypto space, while reinforcing the company’s commitment to backing its stablecoin with robust reserves.