Tether Acquires 8,888 BTC in Q1 2025, Expanding Holdings to $8.46B: Report

Tether, the company behind the USDT stablecoin, has expanded its Bitcoin (BTC) holdings with a purchase of 8,888 BTC on the final day of Q1 2025. According to Arkham Intelligence data, the acquisition, valued at $735 million, brings Tether’s total Bitcoin reserves to 100,521 BTC, worth approximately $8.46 billion.

Notably, the investment comes amid a Bitcoin price downturn during the first quarter. However, Bitcoin has rebounded slightly, trading at $84,000—up 2.2% in the last 24 hours—while its daily trading volume surged over 50% to reach $28 billion, per CoinGecko.

Despite the recovery, Bitcoin is still down nearly 23% from its peak of over $109,000, recorded on January 20 before Donald Trump’s inauguration.

Tether’s Strategic Bitcoin Moves

Tether’s Bitcoin purchases align with its strategy of allocating 15% of its profits to Bitcoin acquisitions, a policy announced in May 2023. Alongside its Bitcoin holdings, the company’s on-chain assets include $4.76 billion in USDT, $215.9 million in XAUT, and $46.17 million in AUSDF.

This strategic approach has contributed to Tether’s strong financial performance. In 2024, according to its Q4 financial report, Tether reported a record annual profit of $13.7 billion. It remains the largest stablecoin issuer, having minted $45 billion in USDT, pushing its market valuation to $144 billion. USDT now accounts for 61% of the total stablecoin market, significantly ahead of USD Coin (USDC), which holds a market capitalization of $60 billion.

To maintain full backing for USDT, Tether holds $7 billion in surplus reserves. The company has also made substantial investments in traditional financial markets, emerging as the seventh-largest buyer of U.S. Treasury securities in 2024 with a $33.1 billion stake—placing it ahead of countries like Canada, Mexico, and Germany in U.S. bond holdings.

Stablecoin Market Heats Up

Remarkably, Tether has been actively minting stablecoins, adding $1 billion USDT on TronDAO in the past 24 hours, bringing its total holdings to over $8 billion. The aggressive expansion comes amid a highly competitive stablecoin market, especially with Ripple launching RLUSD and Circle strengthening its presence after Tether’s exit from Europe due to MiCA regulations. 

Additionally, Circle is preparing for a potential IPO filing in April, which, if approved, could see the company’s stock begin trading on Wall Street by May.

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