Tether Bolsters Bitcoin Holdings with $735 Million Investment in Q1 2025

In the first quarter of 2025, Tether, the issuer of the USDT stablecoin, expanded its Bitcoin reserves by acquiring 8,888 BTC for approximately $735 million. This move aligns with Tether’s ongoing strategy, initiated in May 2023, to allocate 15% of its quarterly profits toward Bitcoin investments.

With this latest acquisition, Tether’s total Bitcoin holdings have risen to 92,646 BTC, valued at around $7.7 billion based on current market prices. This accumulation underscores Tether’s commitment to diversifying its reserve assets and strengthening its financial position.

Tether’s USDT remains the world’s largest stablecoin, boasting a market capitalization of $143 billion. The company’s substantial profits, primarily derived from interest on its extensive holdings of U.S. Treasuries backing USDT, have facilitated these significant Bitcoin investments.

Beyond Bitcoin acquisitions, Tether has been actively investing in various sectors. In November 2024, the company announced plans to invest $500 million in Bitcoin mining operations across South America, including Uruguay, Paraguay, and El Salvador, aiming to contribute to the security and decentralization of the Bitcoin network.

Additionally, Tether has ventured into the artificial intelligence sector, focusing on developing open-source, multimodal AI models to address real-world challenges. This initiative reflects Tether’s broader strategy to diversify its investments and foster innovation across various industries.

By consistently increasing its Bitcoin reserves and exploring new investment avenues, Tether not only diversifies its asset base but also reinforces confidence in its stablecoin’s stability and reliability within the cryptocurrency market.