With its latest purchase of 8,888 Bitcoins, Tether has established itself as the sixth-largest Bitcoin holder in a single wallet. The March 31 purchase has ignited its Q1 BTC value to $745 million, however, it is still behind Binance and Bitfinex.
Tether, the world’s largest stablecoin issuer, has now become the sixth-largest Bitcoin holder with its recent Bitcoin purchase. The company has purchased 8,888 Bitcoins on March 31, bringing the total number of BTC held to 100,529, which is worth $8.4 billion.
Though Tether has outshone many institutions that integrated Bitcoin into corporate treasuries, it is still behind Binance and Bitfinex, which hold the first and second positions in Bitcoin holdings with approximately 248,597 and 168,010, respectively.
Tether’s Bitcoin Buying Strategy: A Major Contribution To Its Treasury
Tether has utilized Bitcoin buying as a strategy since May 2023, the company announced its plans to allocate 15% of its quarterly profits to Bitcoin purchases. Rather than short-term arbitrage strategies, these buying strategies align with long-term diversification plans. The BTC acquired throughout the quarter is consolidated at the end.
The Bitcoin buying strategy was inspired by Michael Saylor’s strategy, earlier known as Microstrategy, and was widely adopted by private and public firms. More than 90 public firms are utilizing the Bitcoin buying strategy as part of their treasury reserve.
This strategy is quite different from how crypto native companies manage their capital, which is mainly based on traditional fiat instruments. By allocating a portion of its reserves to Bitcoin, an asset that is not issued by them, Tether is redefining traditional methods of generating profits.
As per data, Tether currently holds a $13 billion treasury, which includes $8.4 billion worth of BTC, $4.7 billion worth of USDT, and around $400 million worth of other forms of stablecoins. Tether’s presence in the top Bitcoin holders is a result of its continuous and scaled approach, with which it considers Bitcoin’s capabilities in long-term financial markets.
Despite Institutional Purchase, Bitcoin Price Drops
Though large-scale purchases from big whales like Tether and Microstrategy are accumulating BTC, the price performance of the largest crypto continues the downtrend since the beginning of the year.
The price of Bitcoin fell more than 12% in the first quarter of 2025, marking the lowest Q1 performance from the past seven years. This huge price drop, despite the massive BTC purchases, which flowed billions of dollars to Bitcoin, is concerning investors. Apart from Tether, Microstrategy, a renowned buyer in the crypto space, has purchased more than $4 billion worth of BTC in the past three months.
With the declining price of Bitcoins, many crypto proponents have introduced the theory of ‘Paper Bitcoins’, a Bitcoin derivative that doesn’t include actual Bitcoin ownership. Though its real impact on Bitcoin price is not evident, some claim it influences the price heavily, while others deny it.
Tether Continues to be A Powerhouse in the Crypto Industry
Tether is one of the most profitable firms in the crypto sector, the company has accumulated a net profit of $13 billion in 2024, mainly from interest income and treasury bonds. According to the latest reports, the stablecoin leader has invested $10.8 million in an Italian Media company, Be Water. It also acquired a large portion of the stake in Juventus FC, a popular football club in Turin, Italy. With these investments, the firm has created a significant influence in the broader crypto market and will continue to contribute more to the crypto space with its recent achievements.