In the first quarter of 2025, USDT issuer Tether has scooped up a massive 8,888 Bitcoin (BTC) worth a whopping $735 million.
Tether, the issuer of the USDT USDT $1.00 24h volatility: 0.0% Market cap: $145.71 B Vol. 24h: $23.63 B stablecoin, has strengthened its Bitcoin BTC $93 290 24h volatility: 0.3% Market cap: $1.85 T Vol. 24h: $28.89 B holdings with a significant $735 million purchase in the first quarter of 2025.
The acquisition of 8,888 BTC has positioned the company as the sixth-largest Bitcoin holder globally, bringing its total Bitcoin reserves to 92,647 BTC, valued at approximately $7.64 billion at current market prices.
Meanwhile historically, Tether’s reserves have been backed by cash, short-term securities, and other traditional financial assets to maintain liquidity. The inclusion of Bitcoin could put USDT at a risk.
USDT issuer #Tether acquired 8,888 $BTC ($735M) in Q1 2025!
In May 2023, Tether announced plans to allocate 15% of its profits each quarter to #Bitcoin purchases for its reserves, with BTC acquired gradually throughout the quarter and settled at the end.
Currently, Tether’s… pic.twitter.com/yGBPEyqLuz
— Spot On Chain (@spotonchain) April 1, 2025
Tether’s Strategic Bitcoin Accumulation
The purchase aligns with Tether’s long-term strategy of allocating 15% of its net realized operating profits each quarter to Bitcoin acquisitions.
This plan was initially announced in May 2023, with the asset being gradually accumulated throughout each quarter and settled at the end.
Despite Bitcoin’s 12% decline in Q1 2025, the worst quarterly performance in seven years, Tether remained committed to its investment approach.
Arkham Intelligence data confirms that Tether withdrew the 8,888 BTC from a Bitfinex hot wallet. The firm’s reserve wallet now holds approximately $7.65 billion worth of Bitcoin.
Such withdrawals from exchange hot wallets to private addresses are often seen as a bullish signal, as they reduce selling pressure in the short term by removing Bitcoin from the market’s immediate liquidity.
Bitcoin Reacts to Tether’s Purchase
Tether’s latest Bitcoin purchase coincided with notable market movement for Bitcoin as it rose above $84,000 after dipping to a daily low of $81,314.21, witnessing a 4% gain in 24 hours.
This uptrend followed over $226.91 million in liquidations over the past 24 hours, which includes $147.45 million worth of BTC shorts, shows CoinGlass data.
Tether’s purchase came shortly after MicroStrategy, now rebranded as Strategy, announced an additional Bitcoin acquisition.
$MSTR has acquired 22,048 BTC for ~$1.92 billion at ~$86,969 per bitcoin and has achieved BTC Yield of 11.0% YTD 2025. As of 3/30/2025, @Strategy holds 528,185 $BTC acquired for ~$35.63 billion at ~$67,458 per bitcoin. $STRK $STRF https://t.co/1sfyBIglnt
— Michael Saylor⚡️ (@saylor) March 31, 2025
On March 31, Strategy added 22,048 BTC worth $1.92 billion to its corporate treasury, purchased at an average price of $86,969 per coin. Strategy’s total Bitcoin holdings now amount to 528,185 BTC.
Could BTC’s Volatility Undermine USDT’s Stability?
While Tether’s Bitcoin accumulation strategy signals institutional confidence in the asset, it also raises concerns about the stability of USDT.
Tether’s Bitcoin reserve address withdrew 8,888 BTC from the Bitfinex hot wallet, worth about $735 million. The address currently holds 92.647K BTC, worth $7.65 billion, and is also the sixth-ranked BTC wallet address. Tether stated that it would regularly use 15% of the…
— Wu Blockchain (@WuBlockchain) April 1, 2025
USDT’s primary function is to maintain a 1:1 peg with the US dollar, ensuring stability within the crypto market. However, increasing exposure to Bitcoin, a highly volatile asset, could introduce risks to USDT’s peg.
If a significant portion of Tether’s reserves becomes tied to Bitcoin’s fluctuating value, USDT’s ability to maintain its dollar peg could be compromised.
In extreme scenarios, a steep decline in Bitcoin’s price could impact Tether’s balance sheet, leading to potential liquidity concerns.
If Tether’s Bitcoin-heavy reserves raise doubts about its ability to honor redemptions at scale, it could diminish trust in USDT’s stability and dominance in the stablecoin market.
This could create opportunities for rival stablecoins, such as USDC, DAI, and even RLUSD to gain market share at Tether’s expense.
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