Tether, the company behind the world’s largest stablecoin USDT, completed its fourth quarter of 2025 with a substantial Bitcoin acquisition.
The stablecoin giant purchased 8,888.8888888 BTC during Q4 2025, pushing its total disclosed Bitcoin holdings past 96,000 coins worth approximately $8.4 billion.
CEO Paolo Ardoino confirmed the purchase on December 31, 2025, marking the third time in 2025 that Tether acquired exactly 8,888 Bitcoin. The purchase demonstrates Tether’s continued commitment to building Bitcoin reserves despite cooling crypto markets.
Strategic Bitcoin Accumulation Policy
Tether’s Bitcoin buying strategy stems from a policy established in May 2023. The company allocates up to 15% of its realized quarterly operating profits toward Bitcoin purchases. This systematic approach treats Bitcoin as a long-term reserve asset rather than a speculative trading position.
On-chain data tracked by blockchain analyst Ember CN reveals the complete picture of Tether’s Q4 activity. The company made two major Bitcoin movements during the quarter. On November 7, 2025, Tether withdrew 961 BTC from Bitfinex exchange worth approximately $97.18 million. Then on January 1, 2026, it transferred 8,888.8 BTC valued near $778 million to its primary Bitcoin reserve address.
Source: @paoloardoino
Combined, on-chain analysts estimate Tether’s total Q4 2025 Bitcoin purchases reached approximately 9,850 BTC worth roughly $876 million at the time of acquisition.
Fifth-Largest Bitcoin Holder Globally
Tether’s Bitcoin reserve address now holds 96,185 BTC valued at approximately $8.42 billion at current market prices. This positions Tether’s wallet as the fifth-largest known Bitcoin address globally, according to blockchain data from Arkham Intelligence.
Among private corporate treasuries, Tether ranks second only to Strategy (formerly MicroStrategy), which holds approximately 672,000 BTC. The stablecoin issuer trails only major exchange wallets like Binance, Robinhood, and Bitfinex in total Bitcoin holdings.
The company’s average acquisition cost across its entire Bitcoin position stands at approximately $51,100 per BTC. With Bitcoin trading significantly higher, Tether holds more than $3.5 billion in unrealized profits on its Bitcoin reserves.
Diversified Reserve Strategy
Bitcoin represents just one component of Tether’s expanding hard asset strategy. The company maintains a diversified reserve portfolio backing its USDT stablecoin, which has approximately $187 billion in circulation as of early 2026.
U.S. Treasury securities form the backbone of Tether’s reserves, with the company holding over $97.6 billion in Treasuries. This positions Tether among the top 20 largest holders of U.S. government debt globally.
Beyond Bitcoin and Treasuries, Tether has aggressively accumulated physical gold. The company purchased 26 metric tons of gold in Q3 2025 alone, outpacing any single central bank during that quarter. Tether’s total gold holdings now stand at 116 metric tons, making it the largest private holder of physical gold worldwide.
Twenty One Capital Connection
Tether’s Bitcoin exposure extends beyond its direct holdings. The company is the majority owner of Twenty One Capital, a Bitcoin-focused treasury company that began trading on the New York Stock Exchange in December 2025 under ticker XXI.
Twenty One Capital holds 43,514 BTC as of January 1, 2026, making it the third-largest public company Bitcoin holder behind MARA Holdings and Strategy. Tether backed Twenty One Capital alongside Bitfinex and SoftBank Group, providing significant Bitcoin contributions to launch the venture.
Some confusion arose earlier in 2025 when Tether’s quarterly reports showed fluctuating Bitcoin balances. CEO Ardoino clarified that apparent decreases resulted from Bitcoin transfers to Twenty One Capital rather than market sales, addressing speculation about Tether selling its reserves.
Market Context and Institutional Trends
Tether’s Q4 2025 Bitcoin purchase occurred during a period of market volatility. Bitcoin fell below $90,000 during the quarter, representing a roughly 22% decline from earlier highs. Despite the pullback, Tether maintained its systematic purchasing schedule.
The broader corporate Bitcoin accumulation trend showed signs of cooling in late 2025. New corporate adopters fell from around 53 in Q3 to just nine in Q4, with November seeing only three new institutional entrants. Heightened market volatility, elevated Bitcoin prices, and growing competition from spot Bitcoin ETFs contributed to the slowdown.
However, established Bitcoin treasury companies like Tether and Strategy continued accumulating regardless of short-term price movements. Japan-listed Metaplanet added 4,279 BTC in late December, bringing its holdings to 35,102 BTC. Strategy CEO Michael Saylor continued raising capital to expand his company’s Bitcoin position to approximately 672,000 BTC.
Collectively, an estimated 117 to 145 public companies and institutions now hold Bitcoin on their balance sheets, controlling roughly 1.5 million BTC worth between $90 billion and $150 billion.
The Bottom Line
Tether’s Q4 2025 Bitcoin acquisition reinforces its position as one of the cryptocurrency market’s most significant institutional players. The company’s systematic approach of converting stablecoin profits into Bitcoin creates consistent buying pressure independent of market sentiment. With over 96,000 BTC in direct holdings plus substantial exposure through Twenty One Capital, Tether has firmly established itself among the world’s largest Bitcoin holders while maintaining its dominant position in the stablecoin market.