Key Points

• Tether has increased its Bitcoin portfolio by $627 million in the first quarter of 2024, surpassing the $5 billion mark.
• Tether is engaged in Bitcoin mining, energy production, and has recently entered the AI technology sector.

The stablecoin issuer Tether has upped its Bitcoin holdings by $627 million in the first quarter of 2024, pushing the total value of its holdings to over $5.2 billion. This is the first time that Tether's Bitcoin holdings have exceeded $5 billion, aligning with Bitcoin's all-time high this year, currently valued around $69,500.

Bitcoin Accumulation and Expansion

While Tether has not officially revealed its Bitcoin addresses, it was confirmed last year that one of its Bitcoin addresses has been consistently acquiring Bitcoin since September 2022. With the recent Q1 purchase, Tether has risen from the 11th to the 7th largest Bitcoin holder.

Tether CEO Paolo Ardoino confirmed the purchase of 8,888 Bitcoin throughout the first quarter, settling it at the end of March 31.

Investment Strategy and Business Operations

Tether disclosed its Bitcoin holdings in May 2023 through its Q1 attestation report for that year. The company announced its intention to buy Bitcoin with up to 15% of its quarterly profits as it shifts its stablecoin reserves from U.S. government debt to cryptocurrency.

In addition to its direct Bitcoin investments, Tether is active in Bitcoin mining, energy production, and recently entered the AI realm. Tether aims to pioneer open-source multimodal AI models to drive innovation and accessibility within AI technology.

Tether's primary focus is managing the USDT stablecoin, which generated $5.4 billion in excess reserves as of December 31, 2023, according to the company's Q4 attestation report. Tether remains the largest stablecoin issuer, with the total USDT supply exceeding 109 billion.