Tether's Astonishing $618 Million Bitcoin Acquisition Propels It to Seventh Heaven Among Crypto Titans!

Tether (USDT) has recently made headlines by becoming the seventh-largest holder of Bitcoin globally. Bitinfocharts data reveals that Tether acquired over 8,000 BTC within a single day, marking a significant addition to its digital assets.

The transaction, occurring on March 31, saw Tether receiving approximately 8,889 BTC from a Bitfinex hot wallet, totaling around $618 million. This substantial purchase has propelled Tether's total Bitcoin holdings to approximately 75,354 BTC, amounting to a value of $5.23 billion.

Surpassing a wallet identified as a Binance cold wallet by Arkham Intelligence, which holds 75,117 BTC valued at $5.22 billion, Tether now holds 0.3% of the total circulating supply of Bitcoin.

Tether Bolsters Bitcoin Reserves Amid Institutional Interest Surge

Tether has strategically increased its Bitcoin reserves over the past year through periodic purchases, aiming to diversify its reserves, which include gold, cash equivalents, and short-term deposits.

This recent acquisition aligns with a surge in institutional interest in Bitcoin, driven by various factors such as the launch of several spot Bitcoin exchange-traded funds (ETFs) in the United States and the upcoming Bitcoin halving event.

Despite regulatory hurdles, Tether's USDT remains the dominant stablecoin in the crypto market, accounting for 69% of the market with a circulating supply valued at $104 billion.

Regulatory Scrutiny Mounts as Tether Faces Delisting and Investigation

However, Tether faces ongoing scrutiny from regulators, with recent reports indicating investigations by US and UK authorities into crypto transactions involving $20 billion USDT conducted through a Russian exchange.

In response to regulatory constraints, OKX has delisted Tether for its European clients, possibly due to implications of the forthcoming Markets in Crypto-Assets (MiCA) framework.

JPMorgan has also expressed concerns about Tether's stablecoin market dominance potentially hindering the broader growth of the crypto industry.

Nevertheless, Tether, led by CEO Paolo Ardoino, remains committed to compliance and ongoing efforts to address regulatory concerns.