Tether recently bought 8,888 Bitcoin, increasing its holdings to 75,354 BTC. This means that Tether is ranked as the seventh-largest Bitcoin holder globally. Furthermore, Tether achieved the highest security standard by completing a System and Organization Controls 2 (SOC) audit. The company also plans to invest around $500 million in Bitcoin mining facilities across Uruguay, Paraguay, and El Salvador, in an attempt to capture 1% of the mining network's total computing power. Additionally, Tether is venturing into the artificial intelligence sector with the goal of creating more transparency and privacy in AI model development. Tether also launched a global recruitment drive to attract “top-tier” talent to its AI division.
Tether Invests Heavily in Bitcoin
Tether, the company behind the USDT stablecoin, turned quite a few heads in the cryptocurrency market by buying 8,888 Bitcoin (BTC), valued at about $618 million on Mar. 31. This purchase increases Tether’s total Bitcoin holdings to 75,354. These tokens were bought at an average price of $30,305. The total value of its Bitcoin assets thus stands at approximately $5.2 billion. According to CoinStats, Tether’s Bitcoin wallet has seen a remarkable return, boasting an unrealized profit of $2.94 billion, a gain of over 128%.
This strategic BTC acquisition comes at a time when institutional interest in Bitcoin is surging, mostly driven by the approval of United States-based spot Bitcoin exchange-traded funds (ETFs) and the anticipation of the upcoming Bitcoin halving. The halving event, which is expected to happen in just 19 days, will reduce the rate at which new Bitcoins are created by half, potentially impacting the crypto king’s value.
After this acquisition, Tether is ranked as the seventh-largest Bitcoin holder globally, according to data from Bitinfocharts. The top position is held by Binance’s cold wallet, which contains more than 248,597 Bitcoin, worth an astounding $17.31 billion. Tether also announced its plan to invest 15% of its net profits into Bitcoin, aiming to diversify the assets backing its stablecoin.
Tether Achieves Highest Security Standard
Tether’s BTC shopping spree is not the only thing that caught the attention of the crypto community. Tether also successfully completed a System and Organization Controls 2 (SOC) audit, achieving the highest level of security compliance as per the standards developed by the American Institute of Certified Accountants (AICPA).
This milestone proves Tether's dedication to create a safe user environment. Tether CEO Paolo Ardoino even called the audit a testament to Tether's commitment to being a leading and compliant stablecoin operator. Ardoino announced that Tether will undergo annual SOC 2 audits to maintain this high standard of security, with the goal to secure the SOC 2 Type II certification by the end of 2025.
Beyond boosting its security credentials, Tether is also venturing into new territories, specifically the Bitcoin mining sector. The company plans to invest approximately $500 million in developing Bitcoin mining facilities in Uruguay, Paraguay, and El Salvador. Tether has its sights set on capturing 1% of the Bitcoin mining network's total computing power.
These new facilities are expected to offer between 40 and 70 megawatts (MW) of capacity, backed by a $610 million debt financing agreement with the German miner Northern Data Group. Furthermore, Tether has ambitions to increase its direct mining operations to 450 MW by the end of 2025, including considering a 300 MW facility. The strategy involves utilizing movable containers for the mining operations, allowing for flexibility in response to fluctuating electricity prices. According to Ardoino, this gradual expansion into mining will be a great learning curve for Tether.
Tether's AI Ambition
Tether Operations Limited also recently announced its decision to expand its focus on artificial intelligence (AI). Amidst rising concerns about the monopolization of AI technologies by major tech corporations, Tether is taking a step forward with its Tether Data division to advocate for greater transparency and privacy in AI model development.
This move builds upon Tether's existing operations and its recent investment in Northern Data Group, aiming to harness Northern Data’s advanced GPU and compute infrastructure to push the boundaries of AI technology. Tether's approach plans not only to make high-performance and privacy-preserving AI technologies more accessible for personal use but also to establish new benchmarks for innovation and utility in the industry.
The strategic expansion of Tether’s AI focus includes a comprehensive three-pronged plan. Firstly, Tether wants to pioneer the development of open-source, multimodal AI models to drive innovation and enhance accessibility in the AI technology space. After this, the company plans to lead collaborations to introduce products and services to the market, leveraging this technology to tackle real-world challenges. Lastly, Tether intends to engage with the broader ecosystem through community contributions, showcasing its products and advancing the field of open AI.
As part of its ambitious expansion, Tether also launched a global recruitment drive to attract “top-tier” talent to its AI division. This recruitment effort marks a significant step in Tether's commitment to its strategic AI initiatives, indicating the company's active pursuit to staff its new division with highly skilled professionals. Through these efforts, Tether is positioning itself to make a massive impact on the AI landscape, challenging the status quo and aiming to make AI's groundbreaking potential much more accessible.
