Tether (USDT) has ascended to being the seventh-largest holder of Bitcoin worldwide following its acquisition of over 8,000 BTC within the last day, as per data from Bitinfocharts.

According to on-chain data, the stablecoin provider received approximately 8,889 BTC, valued at approximately $618 million, from a Bitfinex hot wallet on March 31. This acquisition boosted Tether's total Bitcoin holdings to around 75,354 BTC, equivalent to $5.23 billion.

This move positions Tether above a wallet identified as a Binance cold wallet by Arkham Intelligence, which currently holds 75,117 BTC worth $5.22 billion, solidifying Tether's significant presence in the market. Tether now possesses 0.3% of Bitcoin's total circulating supply

Tether's consistent expansion of its Bitcoin holdings over the past year is part of its strategy to diversify reserves, which include substantial amounts of gold, cash equivalents, and other short-term deposits. This recent purchase coincides with a period of heightened institutional interest in Bitcoin, driven by factors such as the introduction of several spot Bitcoin exchange-traded funds (ETFs) in the United States and the upcoming Bitcoin halving event, expected to reduce the asset's inflation rate significantly.

Despite being the dominant stablecoin in the crypto industry, controlling a substantial 69% of the market with a circulating supply value of $104 billion, Tether continues to face regulatory challenges. Reports indicate ongoing investigations by US and UK authorities into crypto transactions involving $20 billion USDT conducted through a Russian exchange.

Additionally, regulatory constraints have led to the removal of Tether from OKX for its European clientele, possibly linked to the forthcoming Markets in Crypto-Assets (MiCA) framework.

JPMorgan has expressed concerns over Tether's stablecoin market dominance potentially hindering the broader growth of the crypto industry. Nevertheless, under the guidance of CEO Paolo Ardoino, Tether reaffirms its focus on regulatory compliance and ongoing adherence to industry norms and standards.