A quiet transfer of bitcoin, nearly a hundred million dollars worth, just rippled across the blockchain. It seems Tether, the stablecoin giant, has once again added to its substantial bitcoin reserves. This isn’t a headline-grabbing purchase, but it speaks volumes about a deliberate, long-term strategy.
- Tether, a major stablecoin issuer, has reportedly moved approximately $97.3 million worth of bitcoin into its known reserve address, continuing its strategy of accumulating the cryptocurrency.
- This transaction, originating from a Bitfinex hot wallet, aligns with Tether’s established pattern of steadily increasing its bitcoin holdings, which now total around $8.9 billion in that specific address.
- The move suggests Tether may have taken advantage of recent market downturns, potentially realizing significant unrealized profits on its overall bitcoin holdings.
Onchain analysts, those digital detectives who watch every move, spotted the transfer. They say Tether moved 961 BTC, valued at about $97.3 million, into an address known for holding the company’s bitcoin. This particular address, starting with “bc1qj,” is well-labeled by analytics platforms like Nansen and Arkham as part of Tether’s reserves.
The funds arrived late Thursday, specifically at 10:28 p.m. UTC. They came from a Bitfinex hot wallet. This detail raises an eyebrow, as Bitfinex and Tether share the same parent company. So, was this a fresh purchase from the market, or simply an internal reshuffling of existing assets? The source article notes that Tether has not publicly confirmed the acquisition, leaving us to wonder.
Still, the move fits Tether’s established pattern. They’ve been steadily accumulating bitcoin and moving it into their reserve wallet. The last big transfer into this address was in late September, when a massive 8,888 BTC, worth $1 billion, made its way in.
Tether’s Quiet Accumulation Strategy
Tether began buying bitcoin back in September 2022. Then, in May 2023, they made it official. They announced a plan to allocate 15% of their net profits each quarter toward bitcoin purchases. Since then, their reserves have grown consistently, a clear part of a long-term plan to diversify their holdings.
This latest potential addition pushes Tether’s total holdings in that specific reserve address to 87,296 BTC. At current prices, that’s roughly $8.9 billion. This places Tether as the second-largest known private company holder of bitcoin, just behind Block One’s 164,000 BTC.
If you include public companies, Tether ranks third, trailing behind MicroStrategy, which holds a staggering 641,205 BTC. It’s worth noting that Twenty One, a bitcoin treasury company backed by Tether, also holds a significant 43,514 BTC, valued at $4.4 billion.
One onchain analyst, Ember, pondered the timing. “Did Tether buy the dip on bitcoin during the recent downturn?” Ember asked. He suggested that based on the withdrawal price from Bitfinex, the average purchase price for these particular bitcoins was around $49,121. This implies a substantial floating profit of $4.55 billion for Tether on their overall bitcoin holdings.
The “bc1qj” address itself is quite a powerhouse. It ranks among the top six single address holders of bitcoin globally. Only a few centralized exchange cold wallets and the infamous Mt. Gox hack address hold more. That’s a lot of digital gold sitting in one place.
Back in May, Tether CEO Paolo Ardoino, who also serves as CTO of Bitfinex, stated that the company held over 100,000 BTC in its reserves. However, the picture isn’t entirely static. There were significant withdrawals later. In June, 14,000 BTC, worth $1.5 billion, moved from Tether’s reserve wallet to an address belonging to Twenty One. Another 1,200 BTC, about $143 million, went to a non-reserve Tether address in July.
Tether’s latest attestation for Q3 last week reported its bitcoin reserves at $9.9 billion as of September 30. At a price of around $114,670 on that day, this figure aligns closely with the amount of bitcoin Arkham tracked in the reserve address, right before this latest 961 BTC transfer.
Bitcoin itself has seen some volatility. It’s currently trading around $100,545. That’s down about 21% from its all-time high of nearly $126,000 reached on October 6. Despite the recent dip, it remains up 8% year-to-date.
Beyond Bitcoin: A Giant’s Expanding Reach
Tether isn’t just about stablecoins and bitcoin. The company’s financial strength is truly something to behold. Ardoino previously mentioned that USDT, their flagship stablecoin, is used by over 400 million people worldwide. It’s growing at a pace of 35 million wallets per quarter, particularly in developing countries, all while strengthening the U.S. dollar’s reach.
The firm reported profits exceeding $10 billion for the first three quarters of this year. This kind of financial performance is remarkable. Tether holds over $135 billion in U.S. Treasurys as of Q3. This places them among the top 20 largest holders globally, putting them in the company of sovereign nations like Brazil and South Korea. Think about that for a moment.
With a team of less than 200 people, Tether has shown impressive financial strength. They’ve also been actively deploying capital into a variety of projects beyond stablecoins. They’re investing in artificial intelligence, telecommunications, data centers, and energy infrastructure. They’re even making moves in bitcoin mining, with Ardoino suggesting they might become the biggest bitcoin miner by the end of 2025.
Recently, Tether also announced USAT, a new U.S.-regulated, dollar-backed stablecoin. This new offering aims to serve American users, complementing USDT’s global presence. It’s a strategic move to expand their footprint in a regulated market.
USDT remains the undisputed leader in the stablecoin market. Its total supply is about $183 billion, dominating the $290 billion market. Tether’s influence, both in crypto and traditional finance, continues to grow, often with quiet, deliberate steps like this latest bitcoin transfer.
