Tether Expands Bitcoin Reserves by $700M Amid FUD Over State of USDT in Europe

Tether, the largest stablecoin issuer, has added $700 million in Bitcoin to its reserves.

This development comes as CEO Paolo Ardoino addresses the fear, uncertainty and doubt (FUD) surrounding the status of USDT in Europe following the December 30th MiCA implementation deadline.

Details of the last purchase

According to Arkham Intelligence on-chain data, Tether transferred 7,629 BTC to its reserves on December 30, 2024, moving tokens from sister exchange Bitfinex’s hot wallet to its corporate crypto reserve address.

BitInfoCharts shows that this move is the largest transaction in 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 has a total of 83,758 BTC, worth about $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 company’s bid to create additional revenue streams.

Following the statement, the stablecoin operator pledged to regularly allocate up to 15% of its realized net operating profits to the purchase of the flagship cryptocurrency. Beyond purchases, Tether has been diversifying its investments into emerging sectors such as artificial intelligence, Bitcoin mining, and decentralized communications.

CEO Ardoino addresses FUD

However, the latest purchase comes as Tether faces growing concerns about USDT’s legal status in Europe. The implementation of the Markets in Crypto Assets (MiCA) regulation on December 30, 2024 has created uncertainty about the future of the asset on European exchanges.

MiCA, which aims to standardize and regulate cryptocurrency operations across the European Union, has sparked fears that USDT could be delisted from exchanges within the bloc due to Tether’s failure to meet the requirements.

Meanwhile, the uncertainty surrounding the possible delisting in the framework has caused a notable drop in the market capitalization of the stablecoin. Data from CoinGecko shows that the global market value of USDT fell from $140 billion over the past week to approximately $137 billion. The drop of more than $3 billion 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 came after attorney Jonathan Galea posted a thread on the same social media platform discussing the potential legal implications of the incoming rules for stablecoins. Ardoino stressed that “USDT is safe,” dismissing concerns about it as unfounded and attributing them to competitors trying to exploit the situation.

SPECIAL OFFER (Sponsored) Binance Free $600 (Exclusive to CryptoPotato): Use this link to register a new account and receive an exclusive welcome offer of $600 to Binance (full details).

LIMITED OFFER for CryptoPotato readers on Bybit – Use this link to register and open a FREE $500 position with any currency!