Tether Freezes Bitcoin Purchases Despite Record Profits

Tether has released its most recent attestation, which claims record profits of $5.2 billion for the first half of 2024. However, a close review of the attestations shows that Tether's purchases of bitcoin seem to have been paused.

Stablecoin issuer Tether has yet to resume its purchases of bitcoin, despite announcing plans to do so earlier this year and posting record profits in the first half of 2024.

A close review of Tether’s latest attestations, which were released on Monday, appears to show that the company’s bitcoin holdings have remained unchanged for the past three months.

This is despite Tether announcing in May that it intended to “regularly allocate up to 15% of its net realized operating profits towards purchasing Bitcoin.”

These investments would “not exceed the Shareholder Capital Cushion,” which has reached a total of almost $12 billion, the company said at the time. However, Tether’s latest attestations show that the company’s total bitcoin holdings are less than $5 billion.

A review of the bitcoin address that The Block has previously identified as belonging to Tether – bc1qjasf9z3h7w3jspkhtgatgpyvvzgpa2wwd2lr0eh5tx44reyn2k7sfc27a4 – seems to confirm that Tether has not acquired any new bitcoin since early April.

The last major transaction into this address was on April 4, when 1,000 BTC was added to the address, bringing the total to 47,084 BTC.

Since then, there have only been seven minor transactions into the address, totaling 1,015 BTC, while 4,000 BTC was moved out of the address on May 23.

As of Monday, the address holds 44,099 BTC, which is the same amount that was disclosed in Tether’s last attestation, released on March 31.

While Tether appears to have paused its purchases of bitcoin, the company is still actively investing in the industry.

As previously reported, Tether has been ramping up its investments in bitcoin mining, recently acquiring a stake in a major mining hardware producer.

The company is also reportedly planning to launch its own mining pool.

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