Tether, the largest stablecoin issuer, has added $700 million worth of Bitcoin to its reserves.
This development comes as CEO Paolo Ardoino addresses the fear, uncertainty, and doubt (FUD) surrounding USDT’s status in Europe following MiCA’s implementation deadline on December 30.
Details From the Latest Purchase
According to on-chain data from Arkham Intelligence, Tether transferred 7,629 BTC to its reserves on December 30, 2024, moving the tokens from sister exchange Bitfinex’s hot wallet to its corporate crypto reserve address.
BitInfoCharts shows that this move is the largest transaction to the company’s strategic Bitcoin reserve since March 2024, when it transferred 8,888.88 BTC. Tether also made a similar transfer of 8,888.88 BTC on December 30, 2023. With this new addition, the company now holds a total of 83,758 BTC, worth around $7.8 billion at current prices.
The latest development is part of its ongoing strategy to diversify its portfolio, with the announcement made in May 2023 as part of the firm’s bid to create additional revenue streams.
Following the declaration, the stablecoin operator committed to regularly allocating up to 15% of its net realized operating profits toward purchasing the flagship cryptocurrency. Beyond the buys, Tether has been diversifying its investments into emerging sectors such as AI, Bitcoin mining, and decentralized communications.
CEO Ardoino Addresses FUD
However, the latest purchase comes as Tether faces increasing concerns surrounding the legal status of USDT in Europe. The implementation of the Markets in Crypto Assets (MiCA) regulation on December 30, 2024, has raised uncertainty about the asset’s future on European exchanges.
MiCA, which aims to standardize and regulate cryptocurrency operations across the European Union, has caused fears that USDT may be delisted from exchanges within the bloc due to Tether’s reported failure to meet compliance requirements.
Meanwhile, the uncertainty surrounding the potential delisting under the framework has led to a notable drop in the stablecoin’s market cap. CoinGecko data shows that USDT’s overall value in the market fell from $140 billion over the past week to approximately $137 billion. The over $3 billion decline marks the largest drop in a year of continuous growth for the cryptocurrency.
In response to these concerns, CEO Paolo Ardoino addressed the growing FUD in an X post, reassuring the crypto community and urging them not to be swayed by misleading information.
The statement was made after lawyer Jonathan Galea published a thread on the same social media platform discussing the potential legal implications of the incoming rules for stablecoins. Ardoino emphasized that “USDT is safe,” dismissing concerns about it as baseless and attributing them to competitors attempting to exploit the situation.
The post Tether Expands Bitcoin Reserves by $700M Amidst FUD Over USDT’s Status in Europe appeared first on CryptoPotato.