Tether Expands Into Bitcoin, AI, and Energy Projects

Tether, the operator of the largest stablecoin by market capitalization, USDT, has significantly increased its Bitcoin reserves by as much as $700 million

Stablecoin issuer Tether has topped up its Bitcoin reserves by a record $700 million, bringing the total to over 82,000 BTC.

The latest addition was confirmed on Dec. 30 by blockchain analytics platform Arkham, showing that 7,629 Bitcoin were transferred into Tether's custody.

With Bitcoin trading at $92,300 at the time of writing, Tether's Bitcoin reserves are now worth around $7.7 billion.

In addition to Bitcoin, Tether also added $6 billion to its U.S. dollar-backed stablecoin and less than $300 million to other stables and Crypto.com's CRO combined.

The move is part of Tether's strategy to reduce its exposure to any single asset and follows a pledge made in May to ramp up Bitcoin purchases.

“We are working on ways to capture revenue, whether through Bitcoin as a strategic reserve or even through mining,” Tether chief executive Paolo Ardoino said at the time.

It is unclear whether Tether purchased or mined the latest batch of Bitcoin, and the company has not specified which method was used.

However, Ardoino has previously hinted at the possibility of Tether getting involved in Bitcoin mining.

“We are looking at all possibilities, including mining, to generate revenue and to deploy our treasury,” he said in an interview with CNBC earlier this year.

Besides crypto reserves, Tether is also planning to invest in AI and energy projects, which Ardoino said could go live as early as early 2025.

The British Virgin Islands-based parent of Tether is also said to be investing in AI startup Northern Data Group, as part of its wide-ranging technology investments.

“Tether ♥️ Bitcoin,” Ardoino tweeted on Dec. 21.

The stablecoin issuer's latest move also reflects a broader trend among crypto-cognizant corporations that are bolstering their reserves in the apex cryptocurrency.

Among them, venture company MicroStrategy, known for its bullish stance on Bitcoin, has added another batch of BTC to its corporate treasury, to the tune of $209 million.

The move further highlights the growing role of digital assets in serving as a reserve currency.

As an institutional cornerstone in the cryptocurrency space, Tether's reserves strategy is particularly significant, showing confidence not only in Bitcoin's long-term value but in the wider adoption of decentralized finance solutions at large.

Through its accrual strategy, Tether is emerging as one of the biggest corporate holders of Bitcoin, signaling a shift in how traditional and crypto-native businesses are managing their reserves.