In a remarkable show of confidence in the cryptocurrency market, Tether, the organization behind the popular Tether stablecoin (USDT), has made a significant investment by acquiring 8,888 Bitcoin, valued at approximately $618 million. This purchase, carried out on March 31, has substantially bolstered Tether’s Bitcoin holdings to 75,354 units, making it the seventh-largest Bitcoin holder globally. With an average purchase price of $30,305 per Bitcoin, Tether’s investment is now worth around $5.2 billion, showcasing a whopping 128% increase in value and an unrealized profit of $2.94 billion, according to recent CoinStats data.
This acquisition arrives at a time when Bitcoin is drawing heightened attention from institutional investors, spurred by the approval of U.S.-based spot Bitcoin exchange-traded funds (ETFs) and the anticipation of the upcoming Bitcoin halving event. The halving, which will cut the Bitcoin block supply issuance rate in half, is expected to further stimulate interest in Bitcoin just 19 days from now.
Tether’s strategic move to invest 15% of its net profits into Bitcoin aims to diversify its asset backing, reflecting confidence in Bitcoin’s long-term value. This decision comes as Tether’s USDT reached a milestone $100 billion market cap on March 4, indicating a 9% growth since the beginning of the year.
Meanwhile, Bitcoin’s price dynamics remain robust, trading above $69,000 and hinting at the conclusion of its pre-halving correction period. Bitcoin’s sustained performance above this crucial support level, despite facing the largest quarterly options expiry in its history, signals a strong market sentiment. Experts suggest that Bitcoin’s current price actions, surpassing its previous all-time high, indicate the market may still not fully reflect the anticipated halving’s impact.
As Bitcoin continues to set new records, achieving seven consecutive months of gains for the first time ever, the cryptocurrency world watches closely. Tether’s latest acquisition not only underscores its bullish outlook on Bitcoin but also positions it as a key player in the evolving digital currency landscape, ready to capitalize on the next wave of crypto advancements and institutional adoption.