Tether Adds 7,600 Bitcoin to Reserves as MiCA Regulations Spark $2 Billion Market Cap Drop

Tether has received a transfer of 7,600 Bitcoin, valued at $705.25 million, from its affiliated Bitfinex wallet. As MiCA regulations heighten concerns over USDT's market position, the stablecoin issuer faces a $2 billion market cap decline amid global FUD.

Tether Strengthens Bitcoin Reserves With $705 Million Transfer

Bitcoin units, with a value of $705.25 million, were transferred to the Tether reserve wallet, as shown by the onchain data. Bitfinex, an allied cryptocurrency trading platform, provided the funds during its 9-month hiatus.

There are 82,983 BTC in the Tether Bitcoin reserves at the moment. The average price was about $36,125, and the total amount was $2.99 billion. The onchain data indicates that the current value of these Bitcoin holdings is $7.68 billion.

Tether Dominates Stablecoin Market With $138 Billion Market Cap

With a market cap of $138 billion, Tether is by far the most valuable stablecoin.

For the last twelve months, the company has been spreading its surplus funds around across Bitcoin and other assets. Bitcoin in particular has been receiving funding from the company since May of this year. At the time, the company had already decided to put up to fifteen percent of its monthly net income into Bitcoin.

Tether Expands Into AI With $5 Billion Investment Plan

In the next year, the stablecoin issuer intends to pour $5 billion into its artificial intelligence platform, as previously reported by Coingape. The company also intends to unveil its AI platform prototype by the conclusion of the first quarter of 2025.

Fear, Uncertainty, and Doubts (FUD) surrounding its global operations is a big problem for the stablecoin issuer, even more so than the Tether Bitcoin transaction update. Many are worried that it will be delisted when the Markets in Crypto Assets (MiCA) rule takes effect today.

The USDT market cap dropped $2 billion, reaching $138.7 billion, as fear, uncertainty, and doubt (FUD) continued to build. However, USDT will remain accessible on decentralized exchanges and peer-to-peer systems, even though the stablecoin will only leave EU centralized exchanges.

In response, Paolo Ardoino, CEO of Tether, stated that the company's competitors are “just desperate to make you believe things that don’t exist.”

At the end of his most recent post, Ardoino stated, "USDT is Safe."