Tether: Stablecoin issuer purchases 8,888 BTC in Q1 2025

‍

USDT stablecoin issuer, Tether, purchases 8,888 BTC in Q1 2025, as part of their Bitcoin reserve strategy. The purchase brings their total BTC holdings to 100,521 BTC, currently worth over $8.6B. Their holdings place them as the sixth largest single holder of BTC in a single address, only behind several exchange wallets and the US Government controlled address holding the funds seized from the Bitfinex Hack.

‍

‍

Tether's position as the sixth largest BTC holder is significant, not just for its size, but because of its unique role in the ecosystem. As the issuer of the market's largest stablecoin, its strategy of diversifying reserves into a volatile asset like Bitcoin is closely watched. This growing Bitcoin treasury is seen by many as both a move to strengthen its corporate balance sheet and a major institutional adoption signal.

Tether has been acquiring BTC with 15% of its net profits since September 2022, with BTC transferred to their Bitcoin reserve wallet at the end of every quarter. With USDT dominance on the rise since the March 2023 USDC depeg, Tether’s profits and hence, BTC purchases have only grown bigger every quarter. In 2024, Tether reported a profit of $13B, more than double the previous year at $6.2B.

‍

‍

The financial success detailed in their 2024 profit report is the engine driving this accumulation. The 'USDC depeg' event in 2023 was a critical turning point that pushed many users to seek safety in USDT, cementing its market dominance. Consequently, their larger profits have allowed the 15% allocation to translate into increasingly substantial BTC purchases, establishing Tether as a consistent, predictable buyer in the market every quarter.