Tether, the issuer of the USDT stablecoin, has significantly increased its Bitcoin holdings by acquiring 7,629 BTC, valued at approximately $705 million.
This acquisition raises Tether’s total Bitcoin holdings to 82,983 BTC, worth around $7.68 billion, making it the sixth-largest Bitcoin holder globally. This move aligns with Tether’s strategy to allocate 15% of its profits towards Bitcoin purchases, a plan initiated in May 2023, as part of their broader effort to diversify their reserves, which also include gold and cash equivalents.
However, Tether’s recent acquisition occurred amid regulatory challenges in the European Union, where new rules impose strict requirements on stablecoin issuers, including a contentious 30% reserve mandate in traditional financial institutions.
Critics, such as Quinten François from WeRate, argue that these regulations could hinder Tether’s operational efficiency and income generation capabilities. Regulatory expert Jonathan Galea has noted that stablecoins like USDT, which are not actively marketed in the EU, may not need MiCA authorization, suggesting that compliance concerns could be overstated.
In response to the surrounding uncertainty, Tether CEO Paolo Ardoino has reassured the community about the safety of USDT, dismissing fears as unfounded and attributing them to competitor desperation. As Tether continues to expand its Bitcoin investments, it remains to be seen how regulatory developments will impact its operations and market position.
