Tether Acquires $705 Million in Bitcoin Amid MiCA Regulatory Challenges
Leading stablecoin issuer Tether acquired 7,629 BTC (approximately $705.25M) through Bitfinex after several months of inactivity. Following this purchase, onchain data from Arkham indicated an additional accumulation of 775.568 BTC at the same address, bringing the total to over 8,400 BTC on December 30.
Tether now holds approximately 83,758 BTC, valued over $7.8 billion. Its Bitcoin holdings surpass its US dollar stablecoin reserves, which total about $6 billion worth of USDT.
Tether Commits 15% of Profits to Bitcoin
Tether has committed to allocating up to 15% of its earnings to Bitcoin, aiming to diversify its portfolio and income streams. In May 2023, it announced this strategy and has since accumulated 82,983 BTC for $2.99B at an average price of $36,125.
This strategy reflects Tether's confidence in Bitcoin while also considering investments in other sectors, including the AI ecosystem and emerging trends.
Tether Expands Bitcoin Treasury Amid Regulatory Saga with MiCA
Tether's recent Bitcoin acquisition underscores its commitment to growth despite regulatory challenges posed by the European Union's Markets in Crypto-Assets (MiCA) framework.
The implementation of MiCA has generated market uncertainty regarding Tether's operations within European markets. Although USDT continues to have strong trading volumes globally, recent market data shows a decline in its circulating supply as participants assess the stablecoin's adaptation to changing regulatory conditions. Other stablecoin issuers may consider adopting Tether's Bitcoin strategy.