Tether’s Bitcoin holdings skyrocket with $618M acquisition

Tether, the issuer of the stablecoin USDT, has bought a lot of BTC to its reserves. The company acquired 8,888 Bitcoins worth $618 million on March 31. This brings Tether’s total Bitcoin holdings to 75,354 bitcoins, with an estimated value of about $5.2 billion, according to on-chain data. The median cost of these Bitcoins to Tether is $30,305.

The trend goes with the market seeing institutional participation in Bitcoin after the approval of spot Bitcoin ETFs in the US. Moreover, Bitcoin has attracted the attention of the crowd with the upcoming halving event in 19 days. Tether’s move to increase its Bitcoin reserve is in line with the directive that the company adopts concerning diversification of the assets that support its stablecoin.

Tether’s Bitcoin holdings surpass 75,000 BTC

As per Bitinfocharts data, Tether became the seventh-largest Bitcoin holding in the world through an acquisition last week. In particular, Tether wallets are currently holding over 75,000 Bitcoins, which confirms that Tether is one of the top cryptocurrency players. Yet, Binance’s cold wallet remains the biggest Bitcoin holder in the world, with 248,597 BTC amounting to $17.31 billion.

Further, Tether has reported that it intends to assign 15% of its net income to Bitcoin in an effort to prove its commitment to upgrade the sustainability and reliability of its stablecoin. This also emphasizes Tether’s proactive development of digital assets.

Performance of Bitcoin and the market dynamics

In spite of recent fluctuations, Bitcoin has been steadfast in the market. After over two months of trading at the psychological support level of $69,000, most of the time, Bitcoin has demonstrated its ability to continue moving up. One must also note that Bitcoin set a new high just before the forthcoming event of halving, a very meaningful event in its history.

While some analysts propose that the pre-halving correction of Bitcoin is over, others argue that the whole impact of the halving is not yet factored in. Basile Maire, co-founder of the D8X decentralized exchange and a former UBS executive, discusses the ongoing significance of the halving event and its impact on bitcoins’ price movement.