Tether’s Q1 Attestation: A Bitcoin Boost

Tether has been quietly pouring some of its excess reserves into Bitcoin, with recent reports showing that by the end of Q1, approximately $1.5 billion worth of Bitcoin was part of its reserve portfolio. That’s around 2% of Tether’s total reserves, a significant jump when you consider Bitcoin was not even a line item in earlier reports.

Digging into the Details: How Much Bitcoin?

So, how much Bitcoin has Tether bought up this quarter? To the delight or dismay of crypto enthusiasts, depending on your perspective, the figure stands at about 52,670 BTC. It’s like Tether decided to dive into the Bitcoin pool without a life vest!

Precious Metals: A New Line Item

In the same report, Tether announced it is also holding approximately $3.4 billion in precious metals, which accounts for 4% of its total reserves. That’s a shiny new update!

Offering Transparency: The New Consolidated Reserves Report

The release of Tether’s latest report carries a message of transparency. In a press statement, Tether noted that this report unveils new categories to bolster trust and provide holders with a better understanding of what backs their USDT stablecoin. The announcement included:

• Physical Gold
• Overnight Repo
• Corporate Bonds
• Bitcoin Holdings

Tether & the Competitive Landscape

In the context of the crypto marketplace, Tether’s growth may be linked to the struggles of its nearest rival, Circle’s USD Coin (USDC). Following concerns over USDC’s exposure to the infamous Silicon Valley Bank, the coin briefly lost its peg in March—an event that rattled some investors. Despite quickly regaining its status, the fallout has left USD Coin’s market cap in a dwindling state.

With Tether claiming $1.48 billion in profits for the same period and increasing USDT circulation by 20%, it appears the stablecoin has seized a golden opportunity in a volatile crypto environment.