Tether, the world’s largest stablecoin issuer, has purchased over 960 Bitcoin worth approximately $98 million, according to Bitcoin historian Pete Rizzo, who announced the news on X. The purchase was reportedly made when Bitcoin was trading near $102,000, suggesting that Tether took advantage of a slight market dip.
This move continues Tether’s ongoing strategy to diversify its reserve assets, using profits from its USDT operations to bolster its balance sheet. The company has been steadily accumulating Bitcoin since 2023 as part of its broader plan to strengthen reserves with non-fiat assets.
Tether’s Bitcoin Holdings Now Total $3.8 Billion
Tether’s Bitcoin accumulation strategy is well-established. Its Q1 2023 assurance report confirmed that the company had begun adding Bitcoin to its reserves. Since then, Tether’s BTC holdings have grown steadily — from around $2.8 billion previously to an estimated $3.8 billion following this latest acquisition.
Under CEO Paolo Ardoino, Tether allocates up to 15% of its net realized profits each quarter to Bitcoin purchases. This latest addition follows that pattern, reinforcing Tether’s position as one of the largest institutional holders of Bitcoin.
A Vote of Confidence Amid Market Fear
Tether’s timing is notable. The purchase came as the Crypto Fear and Greed Index plunged to 19 (Extreme Fear) following more than $1.3 billion in market liquidations. Analysts interpret the move as a vote of confidence amid widespread uncertainty.
Despite the volatility, Bitcoin’s market capitalization remains near $2 trillion, with a dominance of 59%. Many traders on X noted that “giants are buying while retail is panicking,” speculating that Tether’s move could mark a short-term bottom in the BTC price cycle.
Historically, Tether’s reserves have been backed primarily by U.S. Treasuries and cash equivalents. However, since 2023, the company has expanded its portfolio to include gold, Bitcoin, and equity investments in technology firms such as Northern Data AG. Tether’s total reserves now exceed $118 billion, diversified to hedge against U.S. dollar devaluation and maintain the USDT peg at $1.
Transparency and Ongoing Scrutiny
While Tether’s Bitcoin strategy signals long-term confidence in crypto, it continues to face scrutiny over transparency. In 2021, the CFTC fined Tether $41 million for making misleading statements about its reserves. Some market participants remain cautious, warning that any lack of clarity could reignite depeg fears.
Tether maintains that it regularly publishes quarterly attestations verified by independent accounting firms, reaffirming its commitment to transparency and stability.
A Strategic Bet on Bitcoin
With this latest $98 million Bitcoin purchase, Tether has solidified its role as a key institutional buyer in the BTC market. Its holdings now exceed $3.8 billion in Bitcoin, reflecting a deliberate effort to diversify and strengthen its financial foundation.
While regulatory and market risks persist, Tether’s continued accumulation sends a clear message: even in times of fear, it’s doubling down on Bitcoin.
