Tether is now ranked as the second-largest private Bitcoin holder with 90,083 BTC. Meanwhile, MicroStrategy also expanded its Bitcoin portfolio with a $209 million purchase. Hong Kong lawmakers proposed incorporating Bitcoin into national reserves due to its potential to improve financial stability and attract global investment. As 2024 ends, Bitcoin's inability to sustain its recent all-time high also sparked some concerns, and technical analysts warned of a potential dip to $78,000 that could impact its trajectory into 2025.
Tether Boosts Bitcoin Holdings
Tether, the issuer of the USDT stablecoin, has made a big addition to its Bitcoin (BTC) reserves by transferring close to $780 million worth of BTC to its corporate treasury. This was the company’s largest Bitcoin purchase since March and aligns with its May 2023 announcement to allocate up to 15% of its net realized operating profits toward acquiring Bitcoin.
According to data from Arkham Intelligence, Tether’s Bitcoin reserve wallets received two large transfers on Dec. 30, totaling approximately 8,404.5 BTC. As Bitcoin was trading at around $92,500, the latest additions are valued at about $777.4 million. This brought Tether’s total holdings to 90,083 BTC, which is worth nearly $8.3 billion.
Private companies holding Bitcoin (Source: Bitcoin Treasuries)
This latest move happened after Tether’s previous purchase on March 31, when the firm bought 8,888.88 BTC shortly after Bitcoin passed the $70,000 mark. Bitcoin’s price doubled over 2024 and gained more than 108% year-to-date despite recent declines from its mid-December all-time high.
Tether now ranks as the second-largest private Bitcoin holder, with its holdings trailing only the 140,000 BTC held by blockchain software firm Block.one. In the overall rankings, including public companies, Tether holds the third position, with MicroStrategy leading the list with a staggering 446,400 BTC.
The surge in Bitcoin’s price certainly encouraged more corporations to add the cryptocurrency to their treasuries. KULR Technology Group also recently invested $21 million in Bitcoin by buying 217.18 BTC. This led to a 40% increase in its stock price. Similarly, Quantum BioPharma recently announced a $1 million investment in Bitcoin and other crypto assets to diversify its own treasury.
MicroStrategy Expands Bitcoin Portfolio Again
MicroStrategy, the business intelligence firm and prominent Bitcoin investor, also recently expanded its Bitcoin holdings by acquiring 2,138 BTC for $209 million. The company announced that it made the purchase between Dec. 23 and 29, and paid an average price of about $97,837 per BTC. The acquisition was funded by selling 592,987 shares during the same week.
The firm’s Bitcoin yield has shown great performance, with a year-to-date increase of 74.1% as of Dec. 30 and a quarterly yield of 47.8% for the period from Oct. 1 to Dec. 29. This was the eighth consecutive week that MicroStrategy added Bitcoin to its holdings as the company purchased BTC weekly since Oct. 31. Over this period, the firm acquired a total of 194,180 BTC. However, the volume of Bitcoin that was bought has declined compared to November when MicroStrategy purchased over 100,000 BTC.
Michael Saylor, co-founder and executive chairman of MicroStrategy, teased the latest acquisition on Dec. 29 by hinting at “disconcerting” patterns on Saylor Tracker, a platform monitoring the company’s Bitcoin investments. Saylor also once again reiterated that MicroStrategy is still very much committed to purchasing Bitcoin at any price, even if it reaches $1 million per coin.
In addition to its latest acquisition, MicroStrategy is looking to increase its capacity to issue shares. A Dec. 23 filing with the US Securities and Exchange Commission (SEC) revealed that the company plans to raise the number of authorized Class A common stock from 330 million shares to 10.33 billion shares and authorized preferred stock from 5 million to over 1 billion shares. This move will provide better flexibility for the company to issue additional shares and potentially fund more Bitcoin purchases in the future.
Bitcoin as a Reserve Asset Gains Traction in Hong Kong
A Hong Kong legislator proposed integrating Bitcoin into the special administrative region's national reserves to boost financial security and attract new investment. Wu Jiexhuang, a member of Hong Kong’s Legislative Council, suggested leveraging China’s “one country, two systems” policy to explore Bitcoin’s potential as a reserve asset.
Speaking to state-owned newspaper Wen Wei Po, Jiexhuang talked about the strategic steps smaller nations like El Salvador and Bhutan have taken by incorporating Bitcoin into their reserves, as well as proposals by US President-elect Donald Trump to make Bitcoin a strategic asset.
Jiexhuang argued that Hong Kong could initially include Bitcoin in exchange-traded funds (ETFs) to evaluate its market impact before considering a broader integration into its reserves. He also pointed out Bitcoin’s potential to attract global talent and investment while still providing financial stability amid market volatility. He also believes that holding Bitcoin as a reserve asset could mitigate the risks associated with its growing adoption in traditional markets, giving Hong Kong a first-mover advantage.
The legislator stated that major economic powers adopting Bitcoin in their reserves could stabilize its value and encourage other nations to follow suit and shift away from traditional assets. This, he suggested, could lead to declining values for traditional assets and affect governments’ fiscal reserves.
Hong Kong’s Financial Services and the Treasury Bureau is expected to develop crypto regulations under the principle of “same business, same risks, same rules,” aligning with broader global standards. The region’s focus on Bitcoin aligns with China’s large Bitcoin holdings, which amount to about 190,000 BTC that was acquired through confiscations, placing it second only to the United States in terms of national Bitcoin reserves.
This proposal was made after earlier discussions by another Legislative Council member, Johnny Ng, who announced plans to explore Bitcoin’s feasibility as part of Hong Kong’s financial reserves. Ng pointed to the growing global recognition of Bitcoin as a critical factor in its integration into traditional financial systems.
Market Awaits Bitcoin’s Next Move Into 2025
As 2024 draws to a close, the crypto market is fixated on Bitcoin's price trajectory heading into 2025. Despite achieving a new all-time high earlier this month, Bitcoin has since dipped below that mark, and raised concerns among market participants. It seems like the leading cryptocurrency's inability to sustain its peak is being interpreted as a sign of market weakness.
The broader crypto market, buoyed this year by institutional interest from firms like BlackRock, Fidelity, and pension funds due to the launch of spot Bitcoin and Ethereum ETFs, has not been immune to year-end declines. These downward trends dampened hopes for Bitcoin to close the year with a six-figure price.
Veteran trader Peter Brandt added to the conversation with a technical analysis of Bitcoin’s price chart. According to Brandt, a head-and-shoulders pattern is forming, which suggests a potential drop to $78,000 per Bitcoin if the pattern plays out. While he acknowledges the possibility of the pattern failing or morphing, he still warned traders to act on the pattern as it currently stands.
A decline like this would represent a 15+% drop from current levels but could also serve to close a big price gap on the CME that has been unresolved for nearly two months. For some analysts, addressing this gap could provide a cleaner slate for Bitcoin as it moves into 2025, and could also potentially offer a foundation for future upward momentum.
