Tether continues to hoard nearly $800 million in Bitcoin

Tether, the company behind stablecoin USDT, has just made a notable move by transferring large amounts of Bitcoin into its stockpile.

Specifically, according to data from Arkham Intelligence, on Dec. 30, Tether-owned Bitcoin wallets received two separate remittances totaling nearly 8,404.5 BTC, or about $777.4 million (based on current Bitcoin prices of $92,500). This is Tether's biggest deal since March this year.

After the transaction was completed, the total Bitcoin held by Tether increased to 83,759 BTC, worth nearly $7.75 billion. This action shows that Tether is continuing to fulfill its commitment to allocate profits to buy Bitcoin, which was announced in May 2023. At the time, the company stated that it would “periodically allocate up to 15% of the net operating profit made to the purchase of Bitcoin”.

Tether's active increase in Bitcoin reserves comes amid a spike in the value of the cryptocurrency in 2024. Bitcoin has doubled in value and is now up 108 percent from the start of the year, although there has been a downward correction this week and is down from the ATH level of around $108,000 in mid-December.

Tether's Position in the Bitcoin Hoarding Race

With the number of Bitcoin holdings, Tether is currently one of the largest Bitcoin “whales” in the world. According to data from Bitbo, Tether ranks second among private businesses holding Bitcoin, behind only Block.one (blockchain software company) with 140,000 BTC. When it comes to public companies, Tether ranks third, behind software giant MicroStrategy with 446,400 BTC.

The tendency to hoard Bitcoin by companies is becoming increasingly popular, especially as the price of Bitcoin rises sharply. Many businesses believe that holding Bitcoin will help strengthen their financial strength and boost stock prices.

KULR Technology Group, after spending $21 million to buy 217.18 Bitcoins on Dec. 16, saw its share price soar more than 40 percent, reaching a record high of $4.80.

Evolution of Tether

Not only did Tether attract attention for its Bitcoin hoarding, but also noted significant business successes.

Over the past two years, the market share of the USDT stablecoin issued by Tether has increased from 50% to 75%, occupying a dominant position in the market. According to Token Terminal, total USDT supply currently stands at $118 billion, and Tether's estimated revenue for 30 days (Nov. 16 - Dec. 16) is $400 million.

Tether's strong growth reflects investors' growing interest in cryptocurrencies. Stablecoins like USDT play an important role as a bridge between fiat currencies and the cryptocurrency world, making it easy for investors to enter the market and execute trades.

Tether has been profitable since early 2024, grossing more than $4.5 billion. Much of this profit came from investing in Bitcoin and gold, while profits from the business reached $1 billion.

In September, Tether appointed Jesse Spiro, Paypal's former head of legal relations, as head of its Government Relations division. Since then, Tether has made significant strides in enhancing compliance and transparency.

USDT balance on the exchange

Another notable point is that USDT balances on cryptocurrency exchanges hit a record $20 billion in August. This suggests that investors are actively using USDT for cryptocurrency trading and investing activities.

This trend is observed in both bullish and bearish markets. During volatile market periods, traders often convert assets to USDT to preserve capital. When the market rises in price, they hoard USDT to wait for the opportunity to buy into other cryptocurrencies at better prices.

To further strengthen its position and meet increasingly stringent regulatory requirements, Tether plans to expand its staff to 200 people by mid-2025.