Tether Has Significantly Increased Its Bitcoin Reserves, Acquiring 8888 BTC in Q1 2025

This purchase, valued at about $735 million, brings the company's total Bitcoin holdings to approximately 92646 BTC, worth around $7.8 billion.

Tether, the world’s largest stablecoin issuer, has significantly increased its Bitcoin reserves, purchasing 8,888 BTC in the first quarter of 2025.

This purchase, valued at about $735 million at the time, brings the company’s total Bitcoin holdings to approximately 92,646 BTC, now worth around $7.8 billion. The latest addition, recorded on April 1, highlights Tether’s ongoing strategy of gradually building up its Bitcoin stash and transferring it to its reserve wallet at the end of each quarter.

Since beginning its Bitcoin acquisitions in 2022, Tether has steadily grown its reserves, particularly after announcing last year that it would allocate 15% of quarterly net income to buying BTC.

This approach is part of Tether’s broader effort to diversify its assets. Despite Bitcoin’s nearly 12% price decline in Q1 2025—its worst first-quarter performance since 2018—Tether’s Bitcoin holdings now reflect unrealized gains of about $3.86 billion.

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Bitcoin vs. the Dollar: BlackRock CEO Warns Policymakers

This follows closely a statement by BlackRock CEO Frank De Socio in April, advising policymakers to consider the implications of U.S. macroeconomic performance in 2023 for Bitcoin’s price movements.

During an interview at the Milken Institute’s Global Conference, De Socio noted that macroeconomic trends can have a significant impact on Bitcoin’s price performance.

In 2023, the U.S. dollar experienced a devaluation of about 15%, while Bitcoin experienced an appreciation of over 100% from its November 2022 lows.

This divergence in asset performance could be attributed to macroeconomic trends, such as the U.S. administration’s efforts to devalue the dollar through increased spending and rising inflation, which reached a 40-year high in 2023.

However, despite these efforts, the dollar remained relatively stable throughout the year.

Moreover, the U.S. administration’s strategy of devaluing the dollar to spur economic growth appears to be working, as evidenced by the U.S. economy narrowly escaping a technical recession in the first quarter of 2024.

Despite the small decline in GDP, the U.S. labor market continues to perform well, with unemployment remaining low and wages rising.

In contrast, at the beginning of 2024, economists had largely anticipated a U.S. recession, but it never materialized. Instead, the world’s largest economy narrowly avoided a technical recession, which would have occurred if GDP had fallen for a second consecutive quarter.

After a 0.9% contraction in the first quarter, the U.S. economy grew at a rate of 2.4% in the second quarter, according to the Bureau of Economic Analysis.

Although economists had predicted a smaller growth rate of 1.8%, the BEA revision indicates that private consumption, which accounts for about two-thirds of U.S. economic activity, increased at a rate of 1.3%, up from the 0.1% decline in the first quarter.

Despite this growth, consumer spending slowed in the second quarter, rising at an annualized rate of 1.3%, compared to the 2.3% growth reported in the first quarter.

Furthermore, government spending also decreased in the second quarter, following a surge in the first quarter due to increased social benefits payments.

In the second quarter, the U.S. economy grew at an annualized rate of 2.4%, narrowly escaping a technical recession.

However, economists had anticipated a smaller growth rate of 1.8%, and the BEA revision indicates that private consumption, which comprises two-thirds of U.S. economic activity, increased at a rate of 1.3%, following a 0.1% decline in the first quarter.

Although consumer spending grew slowly in the second quarter, rising at an annualized rate of 1.3% from the 2.3% growth reported in the first quarter, consumer spending is still a key driver of the U.S. economy.

After the U.S. economy contracted at an annualized rate of 0.9% in the first quarter, economists had largely predicted a U.S. recession in 2024.

However, the world’s largest economy narrowly avoided a technical recession, which would have occurred if GDP had fallen for a second consecutive quarter.

After a 0.9% contraction in the first quarter, the U.S. economy grew at a rate of 2.4% in the second quarter, according to the Bureau of Economic Analysis.

This growth rate is in line with economists’ predictions.

However, the BEA revision indicates