Tether Acquires 8,888 Bitcoin on New Year's Eve, Becomes Fifth-Largest BTC Holder

Tether Expands Bitcoin Treasury

Tether, the issuer of the USDT stablecoin, acquired 8,888 Bitcoin on New Year's Eve, bringing its disclosed Bitcoin holdings to more than 96,000 BTC to close out 2025, according to CEO Paolo Ardoino ^[1]. The purchase was valued at approximately $780 million at the time of acquisition ^[1], or $773 million according to current valuations ^[2].

The acquisition elevates Tether's Bitcoin address to the fifth-largest globally, trailing only Binance, Robinhood, and Bitfinex ^[1]. Among privately held corporate Bitcoin treasuries, Tether now ranks second, with only Block.One maintaining a larger BTC reserve among non-publicly listed companies ^[2].

Systematic Accumulation Strategy

The latest purchase represents a continuation of Tether's established Bitcoin accumulation strategy. Since May 2023, the company has committed to allocating up to 15% of its realized operating profits toward Bitcoin purchases for its reserves ^[1][2]. This quarterly acquisition pattern has made Tether one of the most active corporate Bitcoin accumulators.

The stablecoin issuer's financial performance has been exceptional, with the company recording more than $10 billion in profits across the first three quarters of 2025 alone ^[2]. Despite maintaining a workforce in the low triple digits, Tether is considered one of the most profitable companies globally ^[2].

Gold Holdings Rival Central Banks

Bitcoin represents only one component of Tether's hard asset strategy. The company purchased 26 tons of gold during the third quarter of 2025, a larger quarterly acquisition than any reporting central bank ^[1][2]. Tether's total gold holdings now stand at 116 tons, valued at nearly $16 billion, positioning the company among the world's top 30 gold holders ^[1][2].

Ardoino stated in October: "Bitcoin and Gold will survive any other currency" ^[2].

Reserve Composition Draws Scrutiny

Tether's diversified reserve strategy, combining US Treasurys, Bitcoin, and gold, has attracted criticism from ratings agencies and market observers. S&P recently downgraded USDT's rating from "constrained" to "weak," citing transparency and concentration risks ^[1][2]. Former BitMEX CEO Arthur Hayes has also raised concerns about the growing proportion of Bitcoin and gold in Tether's reserves ^[1].

Tether's Bitcoin balance has fluctuated throughout the year, dropping below 100,000 BTC after the first quarter despite having exceeded that threshold following earlier purchases ^[1]. This prompted speculation about potential sales, though Ardoino denied these claims and explained that contributions were made to Twenty One Capital, a Tether-backed company ^[1]. Twenty One Capital held 43,514 BTC as of New Year's Day, making it the third-largest public company Bitcoin holder behind Mara Holdings and Strategy ^[1].

Broader Corporate Bitcoin Trend

Tether's acquisition occurs amid intensifying corporate Bitcoin accumulation. Japan-listed Metaplanet added 4,279 BTC on Tuesday, expanding its treasury to 35,102 BTC ^[1]. Strategy, which maintains the largest corporate Bitcoin treasury, has continued raising equity and debt to expand its holdings beyond 670,000 BTC ^[1]. Among publicly traded companies, MicroStrategy leads with 672,497 BTC, followed by mining firm MARA with 53,250 BTC ^[2].

Despite the rating downgrade, USDT maintains its dominant position in the stablecoin market with a market capitalization of $187 billion ^[2].