Tether, the leading stablecoin issuer, has emerged as a formidable force in the Bitcoin accumulation landscape, significantly expanding its BTC holdings over the past year. This strategic move not only solidifies its position among major corporate investors but also sparks discussions around its evolving asset management philosophy.
Unprecedented Bitcoin Inflows
Over the last 12 months, Tether has strategically added an impressive 27,700 Bitcoin to its treasury, surpassing the inflows of most spot exchange-traded funds (ETFs) during the same period. This substantial acquisition, detailed by CEO Paolo Ardoino, highlights a bifurcated approach: approximately 7,900 BTC were channeled directly into the reserves backing USDT, while a larger portion of 19,800 BTC was allocated to Twenty One Capital (XXI), a digital asset treasury fund Tether supports. While Tether's inflows overshadowed several mid-tier ETFs like VanEck’s HODL and Bitwise’s BITB, it remains positioned behind industry giants such as BlackRock’s IBIT and Fidelity’s FBTC, which saw significantly larger accumulations.
A Clear and Diversified Reserve Strategy
Tether's commitment to Bitcoin is underpinned by a formal policy established in May 2023, dedicating 15% of its quarterly profits towards acquiring the digital asset. This systematic approach positions Tether as one of the few major corporations with a standing directive for Bitcoin investment. Addressing recent scrutiny regarding alleged Bitcoin sales to fund other purchases, CEO Ardoino clarified that observed declines in visible Bitcoin reserves were due to transfers into XXI for long-term strategic investment, not liquidations. He further reaffirmed Tether's overarching strategy to maintain diversified reserves, encompassing not only Bitcoin but also gold and real estate. With its current holdings exceeding 100,521 BTC, valued at approximately $11.36 billion, Tether firmly stands as the third-largest corporate holder of Bitcoin globally.
