Tether, the entity behind the Tether stablecoin, has significantly increased its Bitcoin holdings, purchasing 8,888 Bitcoin valued at $618 million on March 31.
This move boosts Tether’s Bitcoin portfolio to 75,354 units, acquired at an average price of $30,305 each, now valuing approximately $5.2 billion.
This acquisition reflects a substantial unrealized profit of over 128%, amounting to $2.94 billion, as per CoinStats data.
This strategic investment aligns with a period marked by growing institutional interest in Bitcoin, spurred by the U.S. approval of spot Bitcoin exchange-traded funds and the anticipation of the Bitcoin halving event.
The latter is expected to slash the block supply issuance by half in just 19 days.
As a result of its latest acquisition, Tether has ascended to the position of the seventh-largest Bitcoin holder globally, trailing behind Binance’s cold wallet—the largest with more than 248,597 Bitcoin, worth $17.31 billion.
Tether announced its intent to allocate 15% of its net profits towards Bitcoin investments, aiming to diversify the assets backing its stablecoin.
This announcement came shortly after Tether’s USDT reached a milestone $100 billion market cap on March 4, reflecting a 9% growth since the beginning of the year.
The crypto market observed a minor dip with Bitcoin’s price decreasing by 1.23% in the 24 hours leading to 8:45 am UTC, settling at $69,523.
READ MORE: Bitcoin Surges to $70,000, Eyes Record Highs Amid Positive Economic Remarks from Fed Chair Powell
However, Bitcoin has consistently maintained its position above the $69,000 mark since March 25, even amidst significant market events like the largest quarterly options expiry on March 29.
Analysts suggest that Bitcoin’s resilience in flipping its previous all-time high of $69,000 into support indicates the end of the pre-halving correction period.
According to Rekt Capital, a well-known crypto analyst, “Bitcoin is now peaking beyond this old all-time high, potentially positioning itself for this pre-halving retracement to be over.”
The anticipation around the halving event is high, with Bitcoin setting new all-time highs before such events, an unprecedented occurrence in its history.
Despite its robust price performance, experts like Basile Maire, co-founder of D8X decentralized exchange, believe that the halving’s impact is not yet fully accounted for in Bitcoin’s current valuation.
Furthermore, Bitcoin’s achievement of closing seven consecutive monthly green candles marks a historic first, underscoring the cryptocurrency’s strong momentum.
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