Tether, the company behind the world’s largest stablecoin, continues its significant investment into Bitcoin, underscoring its strategy of diversifying its reserves beyond traditional assets. This approach involves regular acquisitions of the leading cryptocurrency, reflecting a long-term commitment established over recent years.
Strategic Bitcoin Accumulation
In the first quarter of 2025, Tether substantially increased its Bitcoin reserves by acquiring an additional 8,888 BTC. This purchase, valued at approximately $735 million at the time, brings the company’s total known Bitcoin holdings to around 92,646 BTC. These reserves are estimated to be worth nearly $7.8 billion based on current market values.
This latest transaction, logged at the beginning of April, aligns with Tether’s established policy. Since 2023, the company has committed to allocating 15% of its quarterly net profits towards purchasing Bitcoin. This systematic accumulation began in 2022, with assets typically transferred to the main reserve wallet at the end of each quarter.
Financial Performance and Diversification
Despite a challenging first quarter for Bitcoin in 2025, which saw its price decrease notably—marking its weakest Q1 performance since 2018—Tether’s Bitcoin investments remain significantly profitable. The company currently holds substantial unrealized gains on its Bitcoin assets, estimated at around $3.86 billion.
Tether’s overall financial health remains strong, largely supported by interest earned on its substantial holdings of U.S. Treasury bonds, along with returns from other assets like gold and Bitcoin. As the leading stablecoin issuer, Tether is also exploring diversification into other sectors, including initiatives in Bitcoin mining, energy production, and artificial intelligence (AI).
Transparency Initiatives
Addressing historical concerns about the transparency of its reserves, Tether recently appointed Simon McWilliams as its Chief Financial Officer (CFO). A key part of his mandate is to push forward with obtaining a full financial audit. Discussions are reportedly ongoing with one of the ‘Big Four’ accounting firms (Deloitte, EY, PwC, or KPMG) to conduct this audit, which the company’s CEO has described as a major priority. Despite past criticisms regarding its reserve backing, Tether’s USDT remains the dominant stablecoin, with a circulating supply hovering around 145 billion tokens.
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