Tether Acquires 8,888 BTC, Positioning It as the Sixth-Largest Bitcoin Holder

Tether, the issuer of the USDT stablecoin, has strengthened its Bitcoin holdings with a significant $735 million purchase

Tether, the issuer of the USDT stablecoin, has significantly strengthened its Bitcoin holdings with a massive purchase of 8,888 BTC in the first quarter of 2025, amounting to approximately $735 million at current market prices.

This acquisition has positioned the company as the sixth-largest Bitcoin holder globally, bringing its total Bitcoin reserves to 92,647 BTC, which is valued at approximately $7.64 billion.

Huge Q1 BTC Purchase by Tether as It Deepens Bitcoin Exposure

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.

The purchase comes despite Bitcoin's 12% decline in Q1 2025, marking the worst quarterly performance for the asset in seven years.

The company is known for maintaining its reserves with cash, short-term securities, and other traditional financial assets to ensure liquidity and meet user demand for quick redemptions of USDT.

However, the inclusion of Bitcoin in its reserves could put the stablecoin at risk if the cryptocurrency faces a major downturn, which could affect the value of USDT.

The Problems a Bitcoin Bear Market Could Bring to Tether

The crypto heatmap on Monday morning shows that Bitcoin is trading at $84,026, showing a 4% gain in the past 24 hours.

The asset dipped to a daily low of $81,314.21, but recovered to reach a high of $84,190.00.

This uptrend in Bitcoin follows over $226.91 million in liquidations over the past 24 hours, which includes $147.45 million worth of BTC shorts, according to CoinGlass data.

Earlier today, MicroStrategy announced an additional Bitcoin acquisition.

The company, now rebranded as Strategy to reflect its broader vision, has acquired 22,048 BTC for about $1.92 billion at an average price of $86,969 per coin.

This brings Strategy's total Bitcoin holdings to 528,185 BTC, valued at approximately $35.63 billion at current market prices.

Could BTC’s Volatility Undermine USDT’s Stability?

While Tether's Bitcoin accumulation strategy signals substantial institutional confidence in the asset, it also raises concerns regarding the stability of USDT.

In May 2023, Tether disclosed plans to allocate a portion of its quarterly profits to investing in Bitcoin as part of its strategy to diversify its reserves.

The company aims to invest 15% of its net realized operating profits each quarter, with the asset being gradually acquired throughout the quarter and settled at the end.

Despite Bitcoin's 12% decline in Q1 2025, marking the worst quarterly performance for the asset in seven years, Tether remained committed to its investment approach.

Annually, Teather’s net income ranges from $600 million to $1 billion. At current prices, 15% of Teather’s 2024 net income would be about $450 million per quarter, which could buy approximately 5,400 BTC.

However, Teather’s purchases varied significantly, and in Q1 2025, it acquired 8,888 BTC, bringing its total to 92,647 BTC, valued at approximately $7.64 billion.

This makes Teather the sixth-largest Bitcoin holder globally, according to public data.

The company’s reserve wallet is also receiving regular deposits of TRX and other tokens used on the TRC20 standard.

Moreover, the crypto exchange Bitfinex, which is affiliated with Teather, is making regular withdrawals of BTC to private addresses.

These actions suggest that Bitfinex might be involved in activities such as lending or derivatives trading.

The company’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.

In other news, a recent report from Arcane Research highlighted that Bitcoin's price tends to rise more slowly during periods of low volatility and vice versa.

This finding is based on an analysis of Bitcoin's historical price movements over the past 15 years.

The report also notes that Bitcoin's price tends to decrease more rapidly during periods of high volatility, which can