Key Takeaways:
Bitcoin accumulation forms part of Tether’s wider asset management plan.
Steady purchases reflect a focus on long-term portfolio balance.
Regulatory pressures spark a closer look at reserve structures.
Expanding outside crypto adds layers to its financial strategy.
On March 31, 2025, Tether boosted its Bitcoin holdings by acquiring 8,888 BTC worth $735 million, continuing its strategy of quarterly accumulation and reserve diversification.
With this purchase, Tether’s Bitcoin reserve reached 100,521 BTC—valued at $8.44 billion—making it one of the largest corporate holders of Bitcoin.
Tether Bitcoin Holdings Reflect Long-Term Strategy
According to Arkham Intelligence, the USDT issuer transferred the newly acquired Bitcoin from a Bitfinex address to its primary wallet on April 1.
In addition to Bitcoin, Tether holds $4.75 billion in USDT, $215.89 million in XAUT, $46.17 million in AUSDF, and $27.17 million in EURT across its wallets.
This latest purchase followed Tether’s regular pattern of accumulating Bitcoin during each quarter and consolidating its reserves at the end of the period.
Tether started accumulating Bitcoin in September 2022 and committed in May 2023 to allocate 15% of its quarterly net profits toward additional BTC purchases.
Since then, the company has continued to build its position as part of a long-term diversification strategy.
At current market levels, Tether’s Bitcoin holdings have generated approximately $3.86 billion in unrealized gains, reflecting a profitable approach despite broader volatility.
While Tether posted gains, the broader crypto market faced pressure in early 2025. Bitcoin declined nearly 12% during Q1—its worst first-quarter performance since 2018.
Analysts attributed this downturn to macroeconomic uncertainty, including new U.S. tariffs on Mexico and Canada, and changing investor sentiment.
As of now, Bitcoin trades at around $84,000, marking a 23% decline from its all-time high of $109,114, recorded when Donald Trump returned to the White House as the 47th U.S. President.
Tether Responds to JP Morgan’s Reserve Concerns
Tether’s latest acquisition came as JP Morgan raised concerns about the company’s ability to maintain sufficient reserves.
In mid-February, JP Morgan analysts warned that upcoming regulations might force Tether to reduce its Bitcoin exposure.
The U.S. Congress is currently considering two stablecoin bills: the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act in the House, and the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act in the Senate.
Both measures would tighten reserve requirements, mandating that stablecoins be fully backed by highly liquid assets such as U.S. Treasuries.
JP Morgan estimated that 66% of Tether’s current reserves would meet STABLE Act compliance, while 83% would meet GENIUS Act standards.
In response, Tether CEO Paolo Ardoino dismissed the report, suggesting that traditional banks were critical because they lacked Bitcoin exposure.
JPM analysts are salty because they don't own Bitcoin.
— Paolo Ardoino
(@paoloardoino) February 13, 2025
Tether’s Q4 2024 attestation reported over $7 billion in reserves and $13 billion in annual profits, following the latest Bitcoin acquisition.
Tether Expands Investment Portfolio Beyond Bitcoin
Tether’s recent acquisitions across Bitcoin, sports, media, and AI highlight the company’s multi-sector investment approach.
In February, Tether purchased a majority stake in Juventus FC, a Serie A football club based in Turin.
A month later, it invested 10 million euros ($10.8 million) in the Italian media company Be Water.
Tether has also expressed interest in acquiring a controlling stake in South American agribusiness firm Adecoagro.
In the tech sector, Tether is developing AI tools such as AI Translate, a voice assistant, and a Bitcoin wallet assistant.
Shortly after these announcements, the company committed funds to Zengo Wallet, a self-custodial crypto wallet known for its security and ease of use.
As the company continues to grow, Tether’s strategy of diversifying across sectors suggests an ongoing commitment to strengthening its financial foundation through broader exposure beyond just digital assets.
Frequently Asked Questions (FAQs)
A large Bitcoin reserve can centralize digital asset supply, altering trading patterns and price trends. This consolidation might drive shifts in market behavior and exchange liquidity patterns.
Regular Bitcoin purchases blend asset growth with risk management, buffering volatility and regulatory shifts. This method seeks to secure a stable portfolio over time and reflects a measured, long-term asset approach.
Expanding into sectors like sports, media, and tech diversifies Tether’s revenue sources. This blend of digital and traditional assets may lessen risks and balance overall financial performance.
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