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Writer's pictureDavid Manion

"Tether now 11th biggest Bitcoin holder, analyst says"


"Tether now 11th biggest Bitcoin holder, analyst says"
"Tether now 11th biggest Bitcoin holder, analyst says"

Tether, the company responsible for the USDT stablecoin, has recently released its attestation report for Q2 2023, indicating an increase in excess reserves of $850 million. This growth brings the company's total excess reserves to approximately $3.3 billion, making Tether the 11th largest bitcoin holder in the world. Tether retains these excess reserves to maintain its 100% reserves, which are used to back all USDT in circulation and maintain the token's stability.


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"Tether now 11th biggest Bitcoin holder, analyst says" Tether Holds $1.6 Billion Worth Of BTC In Single Wallet?

Tether, a stablecoin issuer, reported holding over $1.5 billion worth of BTC (approximately 53,495 BTC) in its reserves in the last quarter. According to the latest quarterly report, this amount has increased by over $176 million, bringing Tether's Bitcoin holdings to around $1.676 billion (approximately 55,022 BTC). "Tether now 11th biggest Bitcoin holder, analyst says"


21.co's research analyst, Tom Wan, discovered that Tether may have stored all of its Bitcoin in a single wallet, making it the 12th largest BTC holder at the time. As of Q2 2023, the analyst's initial speculations have been confirmed.


In Q1, the amount of BTC held in Tether's "possible" wallet address matched the amount of BTC published in the company's attestation report. The BTC balance of this address has also increased in Q2, in line with the amount provided in Tether's Q2 report.


The analyst noted that only one Bitcoin address matches the figures of Tether's BTC reserves, and this address, which may belong to the stablecoin issuer, is now the 11th largest Bitcoin holder in the world.


Despite seeking Tether and the company's CTO Paolo Ardoino to verify his findings, there has been no official confirmation from the stablecoin issuer.


Tether’s BTC Holdings Consistent With Initial Plans

It is not surprising that BTC Tether holds a significant amount of reserves, as the company has been transparent about its intention to invest in Bitcoin. In May, the stablecoin issuer declared its plan to allocate 15% of its future profit towards Bitcoin investment. Paolo Ardoino, Tether's CTO and a strong proponent of Bitcoin, has cited the cryptocurrency's resilience as the primary reason for the company's ongoing investment in the asset. Here's what Ardoino had to say:

The decision to invest in Bitcoin, the world’s first and largest cryptocurrency, is underpinned by its strength and potential as an investment asset. Bitcoin has continually proven its resilience and has emerged as a long-term store of value with substantial growth potential. Its limited supply, decentralized nature, and widespread adoption have positioned Bitcoin as a favored choice among institutional and retail investors alike.

There are growing concerns regarding Tether and USDT's exposure to risks due to the increased investment in a highly volatile asset like Bitcoin. Currently, USDT holds the top position as the largest stablecoin in the cryptocurrency market with a market capitalization of approximately $83.81 billion.

USDT market cap at $83.79 billion on the daily timeframe | Source: USDT chart from TradingView
USDT market cap at $83.79 billion on the daily timeframe | Source: USDT chart from TradingView



Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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