Tether Confirms $1.5 Billion in Bitcoin Holdings
Tether has officially revealed it holds approximately $1.5 billion worth of Bitcoin (BTC) as part of its reserve assets, according to its latest attestation report from BDO Italia. The BTC holdings represent around 2% of Tether’s total reserves at the end of the first quarter of 2023.
Blockchain analysts estimate that Tether purchased about 52,670 BTC during the first quarter, quietly expanding its cryptocurrency portfolio through profits and excess reserves.
Tether Expands Transparency with New Reserve Categories
For the first time, Tether’s attestation includes a detailed breakdown of its reserves, adding new categories such as Bitcoin, precious metals, corporate bonds, and overnight repo agreements. The report showed that Tether holds about $3.4 billion in gold, equal to roughly 4% of its total reserves.
In its statement, Tether said the new level of transparency is aimed at reassuring investors and improving public confidence in the world’s largest stablecoin. The firm added that its consolidated reserves report now provides greater clarity for both institutional and retail holders of USDT.
Record Profits and Reserve Growth
The first quarter proved highly profitable for Tether, which reported $1.48 billion in net profits. The company also recorded a 20% increase in the circulation of its USDT stablecoin, pushing its total reserves to a record $81.8 billion.
Higher interest rates on U.S. Treasury holdings and a growing demand for digital dollars have played a major role in this financial performance. The additional profit allowed Tether to reinforce its balance sheet and expand its crypto and commodity reserves.
USDC’s Decline Strengthens Tether’s Market Dominance
Tether’s surge in market strength follows the struggles of its main competitor, Circle’s USD Coin (USDC). In March 2023, USDC briefly lost its peg to the U.S. dollar after concerns emerged over its exposure to the failed Silicon Valley Bank. Although the peg was quickly restored, USDC’s market capitalization has since declined.
Circle CEO Jeremy Allaire attributed the drop to increasing regulatory pressure in the United States, which continues to challenge stablecoin issuers. In contrast, Tether’s global operations and reserve diversification have helped it capture more market share and investor trust.
A Stronger Position for Tether
As the stablecoin market evolves under rising regulatory scrutiny, Tether’s transparency measures and expanding reserve composition may help strengthen its position as a market leader. With its Bitcoin and gold holdings now publicly disclosed, the company continues to project confidence in its long-term stability while capitalizing on the growing demand for digital assets worldwide.
