According to the latest attestation report from BDO Italia, Tether’s reserves include approximately $1.5 billion worth of Bitcoin, accounting for around 2% of the stablecoin issuer’s total reserves at the end of the first quarter. This allocation to Bitcoin was not previously disclosed in their reports.
The report also revealed that Tether holds about $3.4 billion worth of precious metals, constituting roughly 4% of their total reserves. These details were included to enhance transparency for holders of the USDT stablecoin, according to Tether.
In addition to the reserve information, Tether disclosed that it generated $1.48 billion in profits during the first quarter and increased the circulation of its token by 20%. As a result, Tether’s total reserves reached an all-time high of approximately $81.8 billion.
The recent growth of Tether may have been influenced, in part, by the decline of its main competitor, Circle’s USD Coin (USDC). USDC experienced a temporary depegging in the secondary market in March due to concerns about its connection to the failed Silicon Valley Bank. While USDC quickly regained its peg, its market capitalization has since declined. Circle CEO Jeremy Allaire also cited regulatory pressures in the United States as a contributing factor to the coin’s recent setback.