Tether’s Bitcoin Accumulation Strategy: A Deep Dive
According to a recent post by CEO Paolo Ardoino, Tether purchased 8,888 Bitcoin in the fourth quarter of 2025, increasing its holdings to over 96,000 BTC. This purchase expands on a strategy that has tied Tether to operating results: allocating 15% of quarterly profits to Bitcoin. If USDT liabilities continue to rise and short-term interest rates remain high enough to keep interest income high, this policy can convert stablecoin income into recurring spot demand for BTC.
The same strategy also expands mark-to-market exposure within a reserve stack designed for redemptions. This issue has become increasingly important for ratings and regulatory control. The most recent point-in-time snapshot of reserves available in Tether’s public reporting is the BDO pledge for the period ending September 30, 2025.
In BDO’s Q3 2025 Tether pledge, the company reported $181.223 billion in reserves against $174.445 billion in liabilities, leaving $6.778 billion in excess reserves. The breakdown of Tether’s finances is as follows:
| Article (September 30, 2025) | Amount (USD) |
|---|---|
| Total reserves | $181,223 billion |
| Total liabilities | $174.445 billion |
| Excess reserves (buffers) | $6.778 billion |
| US Treasury Bills | $112.417 billion |
| Reverse repos (overnight + term) | ~$21.048 billion |
| Money market funds | $6.410 billion |
| Gold (precious metals) | $12,921 billion |
| Bitcoin | $9.856 billion |
| Secured loans | $14.604 billion |
| Other investments | $3.874 billion |
In this table, Tether evaluated its Bitcoin position using a BTC reference price of $114,160 at the timestamp, putting the BTC line at $9.856 billion. This means that as of September 30, there were approximately 86,335 BTC held ($9.856 billion divided by $114,160), with Bitcoin accounting for approximately 5.4% of total reserves at that time.
How Tether’s Reserve Strategy Turns Stablecoin Growth into Systemic Risk
Between the confirmed snapshot and the end of the year, publicly tracked wallet activity and Ardoino’s fourth quarter numbers provide a rough bridge. Arkham-tagged on-chain reports distributed in early November showed that approximately 961 BTC moved into a Tether-tagged reserve wallet, increasing the holdings to approximately 87,296 BTC at the time, according to Arkham data cited in the market reporting.
If you add the purchase price mentioned by Ardoino of 8,888.8888888 BTC, that comes to around 96,184 BTC, which corresponds to the phrase “over 96,000 BTC”. The forward-looking implication is that Tether’s Bitcoin accumulation is no longer presented as discretionary timing, but as a formula tied to profitability. Profitability, in turn, depends on the size and return on foreign exchange reserves.
In its own 2025 performance disclosures, Tether said its exposure to U.S. Treasuries is at a record level, totaling approximately $135 billion when combining direct and indirect holdings. It also suggested an acceleration in USDT supply growth. This design creates a price channel into crypto demand.
Related Reading: Tether’s $181 Billion Paradox
The shift coincides with enforcement of the European Crypto Asset Markets (MiCA), but the dynamics tell a more complex story than just a simple regulatory shift. The paradox of Tether’s growing USDT supply despite a declining market share under MiCA is a topic of interest among crypto enthusiasts.
How Tether’s Reserve Model Mechanically Channels Treasury Yields into Bitcoin Demand
Higher T-bill and repo yields can increase net interest income, which automatically increases the dollar amount allocated to BTC under the 15 percent policy. Lower yields reduce this capacity, even as token supply continues to grow. To translate the policy into areas that can be tracked from quarter to quarter, a simple rule of thumb applies: BTC purchased per quarter equals 15% of the quarterly profit divided by the BTC price.
Using example profit and price margins:
| Quarterly profit | 15% allocation | BTC price | Implied BTC per quarter |
|---|---|---|---|
| $3.0 billion | $450 million | $75,000 | ~6,000 BTC |
| $3.0 billion | $450 million | $100,000 | ~4,500 BTC |
| $3.0 billion | $450 million | $150,000 | ~3,000 BTC |
| $5.0 billion | $750 million | $100,000 | ~7,500 BTC |
| $5.0 billion | $750 million | $150,000 | ~5,000 BTC |
These scenarios represent how a stablecoin issuer can become a repeat buyer on a scale important to the BTC market structure, without equity offerings or debt-financed treasury transactions.
Related Reading: S&P Downgrades Tether After Gold Purchase
Despite a downgrade by S&P, Tether’s gold and Bitcoin holdings are seen as strength by crypto markets. The company’s decision to buy more gold than any other country has raised eyebrows among investors and regulators alike.
Ratings Pressure Puts Tether’s Reserve Strategy in the Spotlight
For market participants, the valuation narrative creates a clear observation point for the next certification: whether Bitcoin’s share continues to rise and whether categories that require close scrutiny, such as secured loans and other investments, change significantly in composition or size. The macroeconomic context is also important, as stablecoins are now being discussed in the same breath as broader financial instruments.
The IMF said in a ministry paper published in December 2025 that stablecoin issuance has doubled in the past two years. According to the IMF, macro-financial risks related to foreign reserves and cash flow volatility, as well as benefits to payment efficiency, were also highlighted.
As this discussion moves toward oversight, reserve composition and reserve reporting transparency will become part of the product’s risk profile and not just a footnote to the crypto market. On the demand side for Bitcoin, flows have become multi-channel. According to Farside Investors’ daily flow dashboard, net inflows into US spot Bitcoin ETFs were uneven through the end of the year.
Read more about Tether’s Bitcoin accumulation strategy and its implications on the crypto market at https://cryptoslate.com/tether-just-bought-8888-bitcoin-exposing-a-mechanical-profit-engine-turning-t-bills-into-automatic-crypto-demand/
