USDT issuer Tether announced in May of last year that it would regularly allocate 15% of its net profit to purchase Bitcoin. Since then, its holdings have continued to grow, making it the tenth largest holder of Bitcoin, with a total of 66,465 BTC, worth approximately $2.996 billion. This is nearly double the value of $1.5 billion in the first quarter of last year.
Tether, the largest stablecoin issuer, announced in May that it would allocate up to 15% of its net profit to purchase Bitcoin and diversify its asset reserves. When Tether’s second-quarter financial report was released last year, Tom Wan, an analyst at 21co, discovered that Tether’s Bitcoin purchase address held around $1.67 billion worth of Bitcoin, an increase of approximately 1,529 BTC compared to the first quarter of last year. At that time, Tom pointed out that Tether might be the eleventh largest holder of Bitcoin.
Yesterday, data analyst Yu Yin stated that Tether has risen to become the tenth largest holder of Bitcoin. He pointed out that Tether recently withdrew approximately $379 million worth of 8,888.88 BTC from the Bitfinex exchange. Interestingly, the number 8888.88 seems to signify the celebration of the arrival of 2024, which is considered lucky.
Currently, Tether holds a total of 66,465 BTC. With Bitcoin’s price rising over 5% in the past 24 hours, reaching around $45,000, the market value of these Bitcoins is approximately $2.996 billion. Compared to the first quarter of last year, when the Bitcoin asset value was only $1.5 billion, the current value has nearly doubled. According to Yu Yin, Tether’s average cost of purchasing these Bitcoins is around $25,176. Based on the current market price, this means that Tether’s unrealized profit has reached approximately $1.323 billion, equivalent to a 78% return on investment.
Tether’s USD stablecoin USDT is the most dominant stablecoin, with a market value surpassing $90 billion for the first time in mid-December, and currently stands at approximately $91.73 billion, accounting for a market share of stablecoins of 72.05%, according to CoinGecko data.
Tether’s third-quarter financial report revealed that its cash and cash equivalents reached a record high of 85.7% of total reserves. These assets mainly include U.S. Treasury bonds, totaling $72.6 billion, to ensure liquidity and stability of the stablecoin ecosystem.
In addition, as of September 30th, Tether has accumulated $3.2 billion in excess reserves, with only $2 billion in secured loans, and it is estimated that Tether will have $4.2 billion in excess reserves by October 31st, with secured loans amounting to only $900 million.
Related Reports
Tether issues an additional $1 billion USDT on Ethereum! Is the bull market for DeFi coming back?
Arthur Hayes: Stablecoin companies like Tether will be “replaced by banks” once they are regulated in the United States.