Tether CEO Claims 150,000 BTC Holdings, Discrepancy with Reserves Noted

Tether CEO Paolo Ardoino stated that the stablecoin issuer holds approximately 150,000 Bitcoin. This figure exceeds the amount implied by the company’s third-quarter reserve attestation by about 50,000 coins. Uncertainty remains regarding the exact location and acquisition date of these additional Bitcoin holdings, and it is unclear if they represent a recent purchase.

During a keynote at the Plan ₿ Forum in Lugano, Switzerland, Ardoino mentioned Tether’s Bitcoin holdings, stating, “We have give or take 150,000 bitcoin ourselves.” At current market prices, this would represent roughly $11.5 billion in Bitcoin. This statement contrasts with Tether’s third-quarter reserve attestation, which listed $8.37 billion of Bitcoin valued at $83,621 per coin, implying approximately 100,060 Bitcoin were held in reserves backing USDT.

The discrepancy leaves about 50,000 Bitcoin, valued at close to $3.8 billion, unaccounted for in the company’s public filings. Tether has previously stated that its corporate Bitcoin investments are held separately from the reserves that back its USDT stablecoin.

Profit Reinvestment and Financial Health

In May 2023, Tether announced a strategy to allocate up to 15% of its net realized operating profits into Bitcoin, with the company opting for self-custody of these assets. This strategy is supported by significant profitability, as Tether reported a net operating profit of $1.5 billion in the third quarter alone. The company’s overall financial health in Q3 showed $191.45 billion in assets against $183.50 billion in liabilities, resulting in an excess cushion of $7.95 billion. U.S. Treasury bills constituted the largest portion of these reserves, amounting to approximately $132.4 billion.

Transparency Efforts and Scale

The subject of Tether’s reserve backing has been a focus of scrutiny for years. In an effort to enhance transparency, Tether began its first full financial audit with KPMG this year. This audit is a step towards addressing questions about the composition and adequacy of its reserves.

Ardoino also highlighted Tether’s operational scale during his remarks in Lugano, noting that the company serves over 730 million users globally and adds approximately 30 million wallets per quarter. He also discussed Tether’s funding of open-source technologies.

The company’s ongoing audit with KPMG is expected to provide further clarity on its financial structure and asset holdings.

Why This Matters

The materials describe a narrow update: Tether CEO Paolo Ardoino stated that Tether holds approximately 150,000 Bitcoin, which is about 50,000 more than what is implied by the company’s third-quarter reserve attestation. The exact location of the additional 50,000 Bitcoin.

Broader Context

Source materials place the factual news in this context: Tether CEO Paolo Ardoino said the stablecoin giant now holds around 150,000 Bitcoin, worth roughly $11.5 billion at current prices, a figure that exceeds what the company’s own reserve disclosures imply by some 50,000 coins.