Thanks to Tether's excellent quarters, driven by its stablecoin USDT, the best capitalized in the cryptocurrency market, the company does not hesitate to reinvest its money in various sectors. She also takes the opportunity to build up a strategic reserve of Bitcoins (BTC) which continues to grow.
Tether’s strategic Bitcoin reserve continues to grow
This Monday, Tether, the company issuing the USDT stablecoin, moved 8,404.5 Bitcoins (BTC) to his reserve wallet. The company took two steps to finalize its movement. She carried out a 1st transfer of 7,628.9 BTC, then a 2nd of 775.6 BTC. At the current price of Bitcoin, this represents almost $780 million.
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This is the biggest move initiated by Tether towards its reserve wallet since March. At the time, the company had transferred there for 8,888.88 BTC at a time when the price of Bitcoin was flirting with the $70,000 mark.
This quantity of Bitcoin which corresponded to 600 million dollars at the time of the transaction, is valued at $835 million Today. Between the end of March and the end of December, the price of the cryptocurrency rose by around 35%.
In May 2023, Tether announced that it would begin allocating up to 15% of its profits to the acquisition of Bitcoins. A strategy which allowed him, as of December 31, to accumulate in his reserve wallet no less than 83,759 BTC with a total value of approximately $7.9 billion.
Thus, Tether is placed at the 10th position of the ranking of entities that own the most Bitcoin. It is notably surpassed by the American company MicroStrategy which has accumulated BTC, the pillar of its economic strategy.
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More than ever, Tether is reaping profits, driven by its stablecoin
Besides Bitcoin, Tether is known to invest hundreds of millions of dollars in emerging sectors such as artificial intelligence (AI), neurotechnologies, or commodity trading. It can afford such investments because the issuer of USDT is listed alongside Microsoft among the companies generating the most profit per employee.
Thus, Tether, which has only around a hundred employees in its ranks, recorded $5.2 billion in profits at the end of the first half of 2024. The company even expects to exceed the 10 billion dollars in net profits over the whole of 2024. If this were to be confirmed, it would be a record.
The company owes its success to USDT, the stablecoin it issues. With $137.5 billion of market capitalization at the moment, it is the best capitalized stablecoin on the market far ahead of Circle's USDC, 2nd in the ranking. The cryptocurrency backed by the US dollar would be used, according to Tether, by more than 350 million people across the world.
🔎 Everything you need to know about USDT, the most capitalized stablecoin on the cryptocurrency market
However, with the recent full implementation of the MiCA regulation (Markets in Crypto-Assets), there is uncertainty over the future of USDT within the European market. Indeed, as the stablecoin does not comply with the new rules of the European Union, the cryptocurrency exchange platforms concerned have to remove itwhich could constitute a loss of income for the company.
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Source: Arkham Intelligence
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Investments in cryptocurrencies are risky. There is no guaranteed high return, a product with high return potential involves high risk. This risk-taking must be in line with your project, your investment horizon and your capacity to lose part of this savings. Do not invest if you are not prepared to lose all or part of your capital
Surprised by the rise of crypto-assets at the end of the 2010s, I began to closely follow this sector which fascinates me to the greatest extent. When I'm not in football stadiums, rugby stadiums or handball halls, I work on writing relevant articles around cryptocurrencies and more broadly, Web3.
Zacharie Tazrout
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