Tether, the top stablecoin issuer, has recently acquired 7,639 $BTC (accounting for nearly $705.25M) from Bitfinex following a 9-month dormancy. This significant Bitcoin acquisition by Tether takes place amid the prevailing rumors concerning a European ban on its stablecoin $USDT. The move denotes a noteworthy shift in Tether’s reserves.
Tether acquires 7,629 $BTC from Bitfinex, Raising Total Bitcoin Holdings to 82,983 $BTC
While Tether has been accumulating $BTC in huge amounts for reserves, the latest deposit signifies a considerable development. With this acquisition from Bitfinex, the Bitcoin holdings of the $USDT issuer have reached 82,983 $BTC. Tether has reportedly acquired this amount for up to $2.99B in total. The respective holdings’ average purchase cost equals almost $36,125 per $BTC. Nonetheless, the present price of Bitcoin is substantially higher than this figure.
The above-mentioned Bitcoin reserves currently stand for $7.68B, approximately 2.5 times bigger than the investment. The recent Bitcoin influx into Tether’s reserves reflects a key shift following a 9-month inactivity. The transaction from Bitfinex, a well-known crypto exchange closely linked to Tether, has ignited concerns about Tether’s strategic motive at the back.
EU to Ban $USDT Amid Failure to Comply with New Regulations
One of the chief reasons behind this move may be the rumors concerning a $USDT ban across the European jurisdictions. In line with the reports, the European Union is planning to implement a prohibition on Tether ($USDT) within a few days. MiCA regulations will reportedly take effect on the 31st of December, imposing stringent compliance standards concerning stablecoins. In this respect, Tether has reportedly failed to comply with the regulatory requirements, dissimilar to $USDC. This has led to a legal ban on $USDT in the EU jurisdictions.
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Keeping in view an outright prohibition on $USDT in the EU, Tether’s new purchase of $705.25M in $BTC appears to be a strategic buyout. With this, the biggest stablecoin issuer is seemingly preparing to confront the potentially approaching headwinds. In line with the growing optimism about Bitcoin’s likely price uptake in 2025, this acquisition may provide a noteworthy support to Tether.