Latest BDO Italia certification report for Tether revealed than bitcoin (BTC) made up approximately $1.5 billion of the stablecoin issuer's reserves, or approximately 2% of the total, at the end of the first quarter. The accounting firm did not include Bitcoin as a line item in previous reports.
Without much fanfare, Tether has started reinvesting some of its earnings/over-reserves into Bitcoin. How much have they acquired in the first quarter, you ask? Only about 52,670. pic.twitter.com/NI3N0oICOz
โ girevik (@girevik_) May 10, 2023
Precious metals also received their own line item in the report, revealing that Tether holds around $3.4 billion in assets, or roughly 4% of total reserves.
In an accompanying announcement, Tether said it included information about its Bitcoin and precious metal holdings for provide Increased transparency for USDT stablecoin holders:
โThe CRR provides additional categories for the first time with the aim of increasing transparency in Tether reserve reporting. Physical Gold ownership, Overnight Repo, Corporate Bonds and Bitcoin have been reported separately."
The announcement also indicated that Tether made $1.48 billion in profit over the course of the first quarter and increased the circulation of its coin by 20%. Due to this increase in circulation, Tether's total reserves have reached their highest point yet, at approximately $81.8 billion.
Tether's most recent growth may have been caused in part by the fall of its biggest competitor, Circle's US dollar coin (USDC). USDC briefly unstuck on the secondary market in March due to concerns about its exposure to the failed Silicon Valley Bank. The coin quickly regained its peg, but its market capitalization has since declined. Circle CEO Jeremy Allaire has quoted an alleged US regulatory crackdown on cryptocurrencies as another factor in its recent decline.
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