The world’s leading stablecoin issuer, Tether, has grown to become the sixth-largest Bitcoin holder following revelations it acquired 8,888 additional Bitcoins worth at least $735 million in Q1 2025.
According to statistics from crypto analytics firm SpotOnChain, the latest purchase, which analysts believe follows the buy-the-dip strategy, brings the stablecoin issuer’s total Bitcoin holdings to over 92,647 BTC, valued at over $7.64 billion at the current market price.
$3.86 Billion in Unrealized Profits
The transaction by Tether is in line with the company’s plan to continue accumulating BTC every quarter while consolidating its reserves at the end of the period. The latest purchase brings the company into joining the growing list of companies whose wallets contain the largest Bitcoin balances in a single wallet. These include Binance, Bitfinex, Robinhood, and the wallet where the hacked funds fell into the hands of US authorities after Bitfinex was hacked.
Tether launched its Bitcoin buying strategy in September 2022, when the company stated it would commit at least 15% of its net profit to BTC purchases every quarter until May 2023. Since then, Tether has steadily increased its BTC reserves as part of its long-term diversification plan, mainly timing its purchases to employ what looks like the buy-the-dip strategy. At current prices, the accumulated value of the firm’s total BTC holdings represents an unrealized gain of approximately $3.86 billion.
The Need for Diversification
Speaking at a function where he revealed that the firm was spreading its wings to integrate artificial intelligence, telecommunications, and data infrastructure in its operations, Tether CEO Paolo Ardoino revealed that the company was hiring across these sectors. Adding that the company aimed to challenge existing Web2 companies by building decentralized consumer-facing products powered by peer-to-peer technologies, Ardoino stressed the need for diversification. He stated:
“Tether’s upcoming projects and product portfolio will disrupt many legacy Web2 businesses. We focus on real-world consumer app decentralization through peer-to-peer technology.”
Diversification beyond Bitcoin
In addition to acquiring extra Bitcoin by capitalizing on the buy-the-dip strategy, Tether is expanding into other areas, including sports, media, and AI, highlighting the company’s multi-sector investment approach. The company recently bought a majority stake in Turin-based series A football, Juventus FC, before investing an additional $10.8 million in the Italian media company Be Water a month later.
The firm is reportedly interested in acquiring a controlling stake in South American agribusiness firm Adecoagro, besides announcing a commitment to buy Zengo Wallet, a self-custodial crypto wallet known for its security and ease of use.
Conclusion
Tether’s Bitcoin purchases represent a growing number of acquisitions of the flagship cryptocurrency recorded during the first quarter of 2025. The firm joins Michael Saylor’s Strategy, which has mastered the buy-the-dip strategy. Michael Saylor’s firm currently leads the league of firms with the most significant Bitcoin stashes at 528,000 BTC. Most of the firms using this strategy use debt-funded methods to finance their purchases, which gives them long-term viability.
Frequently Asked Questions (FAQs)
What is the impact of Tether’s Bitcoin accumulation strategy?
Large Bitcoin reserves have the potential for centralizing the digital asset supply, which could alter trading patterns and price trends and drive shifts in market behavior and exchange liquidity patterns.
Would the company benefit from its routine Bitcoin acquisitions?
Apart from potentially buffering volatility, regular Bitcoin purchases secure the company’s portfolio over time through a measured long-term asset approach.
What role do Tether’s non-crypto investments play in its overall strategy?
Expanding into other sectors like sports, media, and tech diversifies Tether’s revenue sources at a time when MiCA rules in the EU threaten its market. This blend of digital and traditional assets may lessen risks and balance overall financial performance.
Appendix: Glossary to Key Terms
Tether: A stablecoin, a cryptocurrency designed to maintain a stable value. It is typically pegged to the US dollar (1:1 ratio). Tether offers a less volatile alternative for transactions and storage of value within the blockchain.
Bitcoin whale: An entity or individual holding a large amount of a specific cryptocurrency whose actions significantly influence market prices and liquidity.
Buy the dip: Buying a crypto asset when its price has temporarily fallen, with the expectation that the price will rebound and increase in value.
