Key Takeaways
- Paolo Ardoino, Tether’s CEO, disclosed the company controls approximately 150,000 Bitcoin, valued at around $11.5 billion.
- Official Q3 reserve documentation accounts for only about 100,060 BTC.
- Approximately 50,000 coins remain unaccounted for in public filings, representing close to $3.8 billion in value.
- Ardoino provided no explanation regarding the location of these additional coins or their acquisition timeline.
- The stablecoin issuer’s Q3 excess reserves climbed to $7.95 billion, nearly doubling from June’s $4.11 billion figure.
Paolo Ardoino, the chief executive of Tether, has publicly stated that his company controls approximately 150,000 Bitcoin. At today’s market rates, this position represents roughly $11.5 billion in digital assets. The figure substantially exceeds what appears in the firm’s most recent reserve documentation by around 50,000 coins.
The disclosure came during Ardoino’s keynote address at the Plan ₿ Forum held in Lugano, Switzerland. “We have give or take 150,000 bitcoin ourselves. It’s not much, but it’s honest work,” he remarked to attendees.
Since 2022, Tether has sponsored a Bitcoin and stablecoin adoption initiative in Lugano. At this year’s gathering, the company disclosed multiple metrics concerning its operational scale and asset holdings.
The Numbers Don’t Add Up
Tether’s third-quarter reserve attestation documents the assets underpinning its USDT stablecoin. The filing shows $8.37 billion allocated to Bitcoin, calculated at a price of $83,621 per coin. This valuation translates to approximately 100,060 BTC.
The discrepancy between Ardoino’s public statement and the official attestation amounts to roughly 50,000 coins. At current market values, these unaccounted tokens represent approximately $3.8 billion. Public financial disclosures from Tether have yet to explain this variance.
Ardoino offered no clarification about where these additional Bitcoin are stored. He similarly avoided specifying when the company acquired them. His comment shouldn’t necessarily be interpreted as confirmation of a recent large-scale purchase.
Tether has historically maintained that its corporate Bitcoin investments remain separate from the reserve assets backing USDT. The Q3 attestation exclusively covers stablecoin-backing assets. During his presentation, Ardoino did not provide a detailed breakdown distinguishing between these two separate holdings.
Bitcoin was recently trading around $78,576, reflecting a decline of approximately 3.6% during the previous 24 hours, based on CoinGecko figures. This price movement since the close of September means the coins documented in Tether’s attestation now hold less value than the reported $8.37 billion figure.
Tether has systematically expanded its Bitcoin position over several years. In May 2023, the organization announced it would allocate up to 15% of net realized operating profits toward Bitcoin acquisitions. The company also stated it would maintain direct custody rather than relying on third-party custodians.
Substantial earnings have enabled these ongoing purchases. Tether recorded $1.5 billion in net operating profit during the third quarter alone. The company has consistently delivered billion-dollar quarterly profits throughout the year as USDT circulation has continued expanding.
Excess Reserves Show Substantial Growth
The Q3 documentation reveals $191.45 billion in total assets positioned against $183.50 billion in liabilities. This configuration produces an excess reserve cushion of $7.95 billion. Three months earlier in June, this buffer measured $4.11 billion.
U.S. Treasury bills constitute the majority of reserve holdings. According to the attestation, they account for approximately $132.4 billion.
Tether has endured sustained scrutiny regarding whether USDT maintains full backing. Throughout most of its operational history, the organization has released quarterly attestations instead of comprehensive financial audits.
This year marks a turning point, as Tether initiated its first complete financial audit with KPMG. The engagement represents a significant move toward resolving longstanding concerns about reserve transparency.
At the Lugano conference, Ardoino also discussed Tether’s global footprint. He stated the company currently serves over 730 million users across the world. According to his figures, Tether is onboarding approximately 30 million new wallets each quarter.
He leveraged the platform to promote a collection of open-source technology projects. Tether finances these initiatives through its operating profits.
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