Tether Bolsters Bitcoin Reserves with Massive $700 Million Transfer

Tether, the issuer of the world's leading fiat-backed stablecoin, USDT, has made another significant move into Bitcoin. According to on-chain data from Arkham Intelligence, Tether recently transferred 7,629 BTC, worth approximately $700 million, to its designated Bitcoin reserve address. The transfer, originating from the hot wallet of its sister exchange Bitfinex, occurred at 14:00 UTC.

Bitcoin transactions and balance changes in Tether's Bitcoin wallet.

This substantial transaction marks the largest influx of Bitcoin into Tether's strategic reserve since March 2024, when the company moved 8,888.88 BTC. A similar transfer of 8,888.88 BTC was also recorded on the last day of 2023, according to data from BitInfoCharts.

These transfers are part of a broader strategy announced by Tether in May 2023, where they committed to allocating up to 15% of their profits to Bitcoin. This latest move brings Tether's total Bitcoin holdings to over $7.6 billion, representing over 82,000 coins. The decision to invest in Bitcoin reflects Tether's ongoing efforts to diversify its reserves beyond its primary backing of U.S. Treasury bonds and other cash equivalents, particularly as these assets have generated substantial profits for the company in recent years.

Beyond Bitcoin, Tether has been actively exploring investments in other emerging sectors. The company has channeled resources into areas such as artificial intelligence, Bitcoin mining, and decentralized communications, signaling a broader vision for its role in the evolving digital landscape.