Tether has made waves in the crypto sphere with a significant addition to its bitcoin treasury as 2025 concluded. On December 31, the company acquired 8,888.88 BTC, a move valued at approximately $780 million based on the market prices at that time. CEO Paolo Ardoino shared news of the acquisition on X (formerly Twitter), highlighting that this purchase is part of Tether’s Q4 2025 profit allocation strategy.
The latest acquisition propels Tether’s total bitcoin holdings to more than 96,000 BTC, solidifying the firm’s status as one of the largest corporate holders of the cryptocurrency globally. The purchase aligns with Tether’s 2023 financial strategy, which commits 15% of its quarterly profits to bitcoin investments.
A Long-Term Accumulation Strategy
Tether’s systematic bitcoin purchasing strategy is directly linked to its ongoing profitability. As the issuer of the world’s leading stablecoin, USDT, Tether generates revenue from the underlying cash-like assets that support the token, primarily consisting of short-term U.S. Treasuries and repurchase agreements.
With interest rates remaining elevated and sustained demand for stablecoins, Tether has seen its profit margins increase. The company’s policy of reallocating profits allows it to consistently purchase bitcoin without impacting the reserves that support USDT.
This conservative approach to acquiring bitcoin distinguishes Tether from other corporate investors like MicroStrategy, which has often leveraged capital to fund its acquisitions. Instead, Tether relies solely on excess earnings, fostering a more sustainable investment model that does not depend on external funding mechanisms.
Maintaining Reserve Integrity
Tether emphasizes that its bitcoin purchases do not compromise the core reserves underpinning its stablecoins. The company assures that USDT remains fully backed by highly liquid and stable assets, primarily U.S. government securities and cash equivalents. “The company utilizes only realized profits for bitcoin acquisitions, maintaining the stability of the reserve structure for USDT,” Ardoino explained.
This internal treasury strategy enables Tether to progressively diversify its asset allocations while ensuring liquidity and stability for its core product. Notably, bitcoin does not feature in backing USDT currently in circulation.
Strategic Market Timing
The timing of this acquisition is particularly intriguing. Historically, market liquidity tends to wane toward the year’s end, yet Tether proceeded with the purchase in alignment with its quarterly strategy. The price of bitcoin during the acquisition hovered around $88,000, indicating that Tether purchased the coins at an average price slightly below this figure. Despite the inherent volatility in the market, Tether’s steadfast strategy positions it as a long-term holder of the asset.
Tether’s approach is characterized not by speculative trading but by a commitment to holding bitcoin over the long term. The company has reiterated that its bitcoin holdings will not be utilized for operational purposes or sold in response to market fluctuations.
Reinforcing Corporate Holdings
With the recent acquisition now officially pushing Tether’s total bitcoin reserves over 96,000 BTC, the company joins the ranks of the largest holders globally, following behind firms like MicroStrategy. This strategic move underscores Tether’s dedication to structurally augmenting its balance sheet with digital assets.
Tether’s publicly traced bitcoin wallet addresses underscore the company’s commitment to transparency and accountability in its accumulating strategy. This careful diversification strengthens its overall treasury stability, ensuring the primary reserves behind USDT remain intact and liquid.
