Tether has purchased 8,888 BTC worth $735 million in Q1 2025, increasing its total bitcoin holdings to 100,521 BTC. This makes Tether the sixth-largest holder of Bitcoin in a single wallet, as it continues its long-term reserve diversification strategy.
Background
- Stablecoin giant Tether has consistently added Bitcoin to its reserves since 2022. The company publicly committed in May 2023 to allocating 15% of its net profits each quarter toward bitcoin purchases.
- The latest addition of 8,888 BTC — recorded on April 1 — follows the same end-of-quarter accumulation pattern, pushing Tether’s total holdings to over $7 billion at current BTC prices.
- The purchase comes amid Bitcoin’s worst Q1 performance since 2018, with the price declining over 10% due to broader macroeconomic uncertainty.
- Despite this downturn, Tether continues to reinforce its commitment to Bitcoin accumulation, signaling long-term confidence in the asset class.
Why Should You Pay Attention?
- Tether’s aggressive accumulation of Bitcoin solidifies its position not just as a stablecoin issuer but as a major corporate holder of BTC.
- With 100,521 BTC under management, Tether now controls the sixth-largest BTC wallet globally.
- Its growing influence in the Bitcoin market — combined with its expansion into mining, AI, and energy — signals a significant evolution in the company’s business model.
- Moreover, its actions may influence BTC liquidity, price behavior, and broader institutional adoption.
Who Said What?
- An X user Adam Simecka had questioned the veracity of Tether’s purchase, noting:
“So, let me get this straight… Strategy and Tether bought a combined $10B of bitcoin and the price went down? No. Just no. I'm calling paper bitcoin. Show me the addresses. Prove it.”
- Tether CEO Paolo Ardoino responded to this skeptic by publicly sharing the on-chain transaction verifying the BTC purchase, countering claims that the company’s holdings were fabricated. “Here you go,” Ardoino said in a direct reply on X, linking to the mempool transaction.
- Meanwhile, Tether’s 2024 attestation report showed $13 billion in net profit, driven largely by U.S. Treasury interest income, plus unrealized gains on gold and bitcoin.
- The report continues to face criticism due to the lack of full audits, although the firm remains profitable and influential within the crypto ecosystem.
Zooming Out
- Tether’s ongoing BTC accumulation underscores a wider institutional shift toward cryptocurrency as a strategic reserve asset — even amid volatile price swings.
- While critics continue to demand greater transparency, the company’s actions reflect growing synergy between stablecoin issuers and the broader digital asset economy.
- As Tether expands into mining, AI, and infrastructure, it appears to be positioning itself not just as a stablecoin provider but as a multi-sector crypto powerhouse.
