Tether, the issuer of the world’s most widely used stablecoin, USDT, has significantly expanded its Bitcoin reserves, establishing itself as a formidable institutional accumulator and surpassing the annual acquisition volumes of numerous spot Bitcoin exchange-traded funds. This strategic move underscores Tether’s evolving role in the digital asset ecosystem, extending its influence beyond stablecoin issuance to become a major holder and investor in Bitcoin.
Over the past 12 months, Tether added more than 27,700 BTC to its holdings, bringing its total Bitcoin reserves to an impressive 100,521 BTC. This accumulation has positioned the company as the third-largest corporate holder of Bitcoin globally, trailing only MicroStrategy and Block.one, according to data from Bitcoin Treasuries. This substantial increase in holdings was highlighted by Tether CEO Paolo Ardoino on X, detailing the firm’s strategic allocations.
Tether’s Strategic Accumulation and Market Position
The company’s recent acquisitions are segmented into two key areas: approximately 7,900 BTC were directly integrated into Tether’s reserves to back USDT, while an additional 19,800 BTC were contributed to the Twenty One Capital (XXI) digital asset fund, in which Tether holds a co-investor stake. This dual approach demonstrates a balanced strategy between direct stablecoin collateral and broader investment in digital assets.
Comparatively, Tether’s yearly Bitcoin acquisition volume outpaced several mid-sized spot Bitcoin ETFs, including VanEck HODL, Bitwise BITB, Ark 21Shares ARKB, and WisdomTree BTCW. However, larger institutional players in the ETF space continue to hold more significant volumes. For instance, BlackRock’s IBIT has accumulated 394,600 BTC, Grayscale’s mini Bitcoin Trust holds 44,200 BTC, and Fidelity’s FBTC accounts for 27,900 BTC.
CEO Paolo Ardoino articulated that Tether’s investment strategy is diversified, encompassing not only Bitcoin but also gold and real estate, aiming to maintain resilience in volatile markets. The company initiated systematic Bitcoin purchases in May 2023, committing a notable 15% of its quarterly profits towards acquiring the cryptocurrency. Furthermore, Ardoino has publicly stated Tether’s ambition to become the largest Bitcoin miner by the end of 2025, signaling a deeper integration into the Bitcoin ecosystem and a long-term commitment to the asset’s underlying infrastructure.
Former Wall Street analyst turned crypto journalist, Marcus brings a decade of expertise in trading strategies, risk management, and quantitative research. He writes clear, actionable guides on technical indicators, portfolio diversification, and emerging DeFi projects.