Tether Reports Massive $1B Bitcoin Purchase for Q3

Tether has made a major move in the cryptocurrency market with a $1 billion purchase of bitcoin, raising its total holdings to 86,335 BTC, valued at nearly $9.8 billion at current prices.

The transaction took place at the end of the third quarter and involved transferring funds from Bitfinex to Tether’s wallet, according to Onchain Lens.

Strategic Reserve Expansion

Tether purchased bitcoin in the third quarter as part of its plan to allocate up to 15% of its quarterly profits to these purchases. The plan was established in May 2023. Last year, the company expected earnings of $13 billion, primarily driven by U.S. Treasury yields. This helps it strengthen its balance sheet against changes in traditional currencies.

On-chain data reveals that bitcoin was moved from Bitfinex’s hot wallets to Tether’s reserve address, promoting transparency. Bitcoin now accounts for approximately 6% of Tether’s reserves, surpassing over 50 tons of gold, valued at $6 billion. Total assets have reached $162.5 billion, per the Q2 2025 BDO report.

CEO Paolo Ardoino highlighted the need to diversify beyond cash and views Bitcoin as a crucial asset during uncertain times. The purchase, which occurred at the end of Q3, precedes Tether’s upcoming report in late October and mirrors its Q1 strategy of purchasing 8,888 BTC for $735 million, resulting in over $5.5 billion in gains at an average price of $48,542 per coin. 

Tether Rides on Regulatory Clarity

Bitcoin has surged 150% this year, reaching a record high of $113,000. The rise has bolstered Tether’s strategy, particularly with over 1.25 million BTC coming in from U.S. spot ETFs and new regulations, such as the GENIUS Act.

Tether’s recent purchases have positioned it among the top five private holders of Bitcoin, trailing only Block.one, which holds between 140,000 and 164,000 BTC. Tether outpaces other companies, such as SpaceX and Block Inc.

Meanwhile, Tether launched USA₮ on September 12. The USA₮ is a U.S.-regulated stablecoin tied to the dollar, designed to meet local demand under clearer rules. With USDT being the fourth-largest cryptocurrency, the move strengthens Tether’s position across exchanges and peer-to-peer networks.

While some critics have raised concerns about transparency, Tether reported a $4.9 billion profit in Q2 and holds $127 billion in Treasuries, showing strong operational performance.

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