Tether CEO Paolo Ardoino revealed that the company holds approximately 150,000 Bitcoin, a disclosure that significantly surpasses the amount implied by Tether’s recent reserve reports. This revelation, made during the Plan B Forum in Lugano, Switzerland, indicates that a substantial portion of Tether’s Bitcoin assets are managed separately from its USDT reserves.
Ardoino stated these additional holdings represent about 50,000 Bitcoin more than what was indicated in the company’s third-quarter reserve report. Valued at approximately $11.5 billion based on a Bitcoin price of $76,872 at the time of disclosure, this brings Tether’s total Bitcoin holdings to this figure. In contrast, Tether’s Q3 reserve report, audited by BDO, listed $8.37 billion in Bitcoin, which, at a price of $83,621.23 per coin, equates to roughly 100,060 BTC.
Tether emphasized that these additional Bitcoin holdings are managed through Tether Investments, utilizing excess capital and realized profits. These assets are kept separate from the reserves backing USDT and are not included in the company’s standard reserve reports. This approach aligns with Tether’s announced policy from May 2023, which allows for the use of up to 15% of its quarterly realized net operating profit to purchase Bitcoin.
The company’s Q3 financial statement showed total reserves of $191.45 billion against liabilities of $183.5 billion, resulting in excess reserves of $7.95 billion as of September 30. Tether also reported holding over $130 billion in U.S. Treasury bonds and investments in various companies, including those in Bitcoin mining and artificial intelligence.
This disclosure raises questions about the completeness of market understanding regarding Tether’s total Bitcoin exposure, as the self-managed investments through Tether Investments are not reflected in the audited reserve reports. While Tether has committed to using profits for Bitcoin accumulation as a long-term strategy, details regarding the exact storage, management, and purchase timing of these additional 50,000 BTC remain unspecified. The company has indicated that these self-managed holdings will not appear in reserve reports.
Uncertainties persist regarding the precise location where the additional 50,000 BTC are held, the specific timing of their acquisition, and how they are managed under Tether’s self-custody policies. The exact breakdown of these holdings between excess capital and realized profits is also not detailed. Tether has stressed that its Bitcoin purchases are profit-driven and intended for long-term holding, rather than speculative trading.
Why This Matters
The materials describe a narrow update: Tether CEO Paolo Ardoino revealed that Tether holds about 150,000 Bitcoin, valued at approximately $11. The exact location where the additional 50,000 BTC are held.
Broader Context
Source materials place the factual news in this context: Tether’s Q3 reserve report showed $8.37 billion in Bitcoin, implying about 100,060 BTC.
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