Tether, the renowned company behind the widely utilized Tether stablecoin, made a substantial acquisition by purchasing 8,888 Bitcoin worth an impressive $618 million on Mar 31. This strategic move further bolstered Tether’s already substantial Bitcoin holdings.
Following this acquisition, Tether’s wallet now boasts an astonishing 75,354 Bitcoin, acquired at an average price of $30,305. At the time of this writing, the total value of this Bitcoin holding is approximately $5.2 billion, according to on-chain data analysis.
Remarkably, Tether’s wallet has experienced a staggering 128% increase in value, resulting in an unrealized profit of $2.94 billion, as per the data provided by CoinStats.
This investment occurred during a period of heightened institutional interest in Bitcoin, fueled by the approval of United States-based spot Bitcoin exchange-traded funds and the impending Bitcoin halving event. The halving, scheduled to take place in just 19 days, will reduce the block supply issuance by half, potentially impacting the market dynamics.
Tether, a renowned stablecoin issuer, now secures a prominent position as the seventh-largest Bitcoin holder globally, based on Bitinfocharts data. However, this significant development follows their recent acquisition. The cold wallet of Binance, a leading cryptocurrency exchange, holds the top spot, boasting an impressive 248,597 Bitcoin worth a staggering $17.31 billion at the time of publication.
In a strategic move, the firm has announced its intention to allocate 15% of its net profits toward investing in Bitcoin. This decision aims to diversify the stablecoin’s backing assets, further strengthening its foundations.
Tether’s USDT, a widely recognized stablecoin, achieved a remarkable milestone by attaining a record market capitalization of $100 billion on Mar 4. However, this achievement underscores the stablecoin’s substantial year-to-date growth, which is an impressive 9%.
Bitcoin Surpasses Previous High, Halving Impact Looms
Despite the market’s recent experience with the largest quarterly options expiry event on Mar 29, Bitcoin’s price displayed resilience. In the 24 hours leading up to 8:45 am UTC, the world’s first cryptocurrency witnessed a moderate 1.23% decline, trading at $69,523.
Nevertheless, Bitcoin has maintained a stable presence above the $69,000 support line since Mar 25, demonstrating its enduring strength and stability.
Cryptocurrency expert Rekt Capital believes Bitcoin’s drop before the halving event may be finished. BTC surpassed $69,000 – its past record high – and held this level. Rekt Capital stated:
“Bitcoin is going beyond this old peak, perhaps signaling the pre-halving dip is over.”
Notably, BTC hit a new record before halving for the first time. However, former UBS banker Basile Maire feels the halving impact isn’t fully “priced in” yet, despite Bitcoin’s robust gains.
In an unprecedented event, BTC had seven straight months of price increases. However, this streak of green monthly candles is the longest in Bitcoin’s history.
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The author’s views are for reference only and shall not constitute any investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing.
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