On September 30, blockchain data revealed that Tether moved 8,888. 889 Bitcoin into its reserve wallet. When the move happened, the deal was worth about $1 billion.
The coins came from a Bitfinex online wallet, which has been mentioned before in other reserve activities. Both companies are part of the same parent company, which ties them closely to Tether’s financial plan.
This action comes after a rule that was started in 2023. Tether said it will use up to 15% of its profits every three months to buy Bitcoin. The company usually doesn’t share much information about when things happen or how they are done. However, because it often acts in the same way, it has become easier to follow these transfers.
Reserve Structure and Related Risks
On social media, Tether’s CEO Paolo Ardoino briefly confirmed the transaction by simply saying “yeah” in response to someone who pointed it out. That short response was enough for people watching the market to link the event to the company’s known plan for keeping Bitcoin.
Estimates now say that Tether has about 109,410 Bitcoin. Right now, the value of its Bitcoin holdings is more than $12 billion based on today’s market prices.
Tether has earned its reputation by saying that USDT is completely supported by reserves. For a long time, people have talked about those reserves as a combination of cash, things that are almost like cash, and short-term U. S investments Treasuries Earlier this year, reports said that the company had more than $97 billion in government bonds.
Adding Bitcoin to this reserve means having different types of assets, but it also makes the value change a lot. Bitcoin is easy to buy and sell, but its price can change a lot very quickly. This makes it harder for a company whose product is supposed to stay at one dollar.
The main problem is how to handle Bitcoin reserves during stressful times. If people need to change their Bitcoin into dollars when the Bitcoin market is struggling, selling at bad prices could make the market more unstable. Critics say that this setup makes it hard to protect against risks.
Market and Strategy Effects
It’s not clear if the $1 billion action was for buying new items in the market or if it was just moving around assets Tether already had.
The addresses linked to Bitfinex indicate some internal changes, but this still makes people wonder about honesty and record-keeping. Without a complete check, it is hard for people outside to see if these changes affect the quality or stability of the total reserves.
For Bitcoin markets, when a big company adds $1 billion in demand, it makes a difference, even if only a small one. Every day, a lot of trading happens, so one single purchase won’t change prices on its own. However, when many people buy around the end of the quarter together, it can impact the availability of stocks to buy or sell. Some traders believe this will help keep Bitcoin’s price stable in the near future.
Tether’s method might influence how other companies view their reserves. If it can include riskier investments while still keeping the value of USDT tied to the dollar, others might want to try similar mixes of risks.
Also, this possibility has caught the attention of regulators who are looking into the rules for stablecoin backing and what information needs to be shared in different areas.
Using Bitcoin by Organizations
Right now, there are two main effects. On one side, Bitcoin has gained another company that is dedicated to holding it.
Buying On the other hand, people who use USDT may be affected by how well Bitcoin is doing, but it’s not always easy to see or measure that impact.
The big question is not if Tether will keep buying Bitcoin, but how this will affect what it needs to do when people want to cash out in the future. The experiment has started, and the markets are paying close attention to how the company handles its growth as both a stablecoin issuer and a Bitcoin owner.
