Tether, the issuer of the largest stablecoin by market capitalization, has increased its bitcoin holdings by withdrawing 8888.88 BTC (about $379 million) from Bitfinex, one of the leading cryptocurrency exchanges, today.
According to Bitinfochart, a website that tracks bitcoin addresses, Tether’s withdrawal has made it the tenth largest BTC holder, with a total of 66465.2 BTC ($2.82 billion) in its wallet. The average cost price of Tether’s bitcoin stash is $25,176, which means that the company has made a profit of $1.148 billion (+68%) from its bitcoin investment.
Proof of Reserve
Tether’s move comes amid growing scrutiny from regulators and investors over its reserves and transparency. The company claims that every USDT, its dollar-pegged stablecoin, is backed by a corresponding amount of cash or other assets, but it has not provided a full audit to prove it. In February, Tether and Bitfinex agreed to pay $18.5 million to settle a lawsuit by the New York Attorney General, who accused them of covering up an $850 million loss of customer funds.
Tether’s Influence on the Market
Tether’s bitcoin holdings also raise questions about its influence on the cryptocurrency market, as some analysts have suggested that USDT issuance could be used to manipulate bitcoin prices. Tether has denied any wrongdoing and said that its operations are independent of Bitfinex and other exchanges.
Bitcoin, the world’s largest cryptocurrency by market value, has been on a bullish run since October 2023. It is currently trading at $43,580.