Tether Acquires 8,888 BTC in Q1, Bitcoin Holdings Exceed 100,000 BTC

- Tether Purchases Bitcoin, Exceeds 100,000 BTC in Holdings - Acquires an Additional 8,888 BTC, Now Holding a Total of 100,521 BTC [Unblock Media] Tether has increased its Bitcoin holdings to over 100,000 BTC. This move signifies a significant shift in Tether's asset strategy. In the last quarter, Tether acquired an additional 8,888 BTC, bringing its total holdings to 100,521 BTC, valued at approximately $8.29 billion (around 11 trillion KRW). This large acquisition aligns with Tether's official strategy of reinvesting up to 15% of its quarterly profit into Bitcoin. Tether explains that this strategy aims to diversify its assets and ensure long-term stability. Traditionally, stablecoin issuers tend to focus their reserve assets on conservative holdings like cash and treasury bonds. However, Tether views Bitcoin as a long-term "store of value," akin to "digital gold," appreciating its inflation-hedging and decentralized asset qualities. This move reflects a trust in Bitcoin's future value within the cryptocurrency ecosystem, prioritizing long-term gains over short-term profits. The expansion of Tether's Bitcoin holdings could have various market impacts. In the short term, it could drive up Bitcoin prices due to increased demand. In the long term, it might bolster institutional investor trust. Additionally, Tether's strategy may influence other stablecoin issuers. While most currently maintain conservative reserve asset strategies, Tether's approach could initiate a trend toward digital asset-based portfolios. ARK Invest recently stated in a report that "Tether’s increased BTC holdings could accelerate the acceptance of cryptocurrencies within traditional financial systems." Tether's Bitcoin holdings and purchase strategy are based on its official financial report for 2024, with asset analyses referencing data from major market analysis institutions such as Glassnode, ARK Invest, and CoinMarketCap. Notably, Glassnode indicated that "Tether has entered the Top 10 of major BTC holding institutions." Tether's Bitcoin acquisition carries significance beyond mere investment. It exemplifies a paradigm shift in the asset strategy of stablecoin issuers, which was previously considered conservative within the cryptocurrency industry. Ultimately, Tether aims to reaffirm Bitcoin's centrality in the crypto market and enhance the trustworthiness of its stablecoin, USDT, through this decision.