Tether has added roughly $780 million in bitcoin, continuing its policy of allocating up to 15% of quarterly profits to BTC. The strategy, introduced in 2023, has gradually made the stablecoin issuer one of the largest corporate holders of bitcoin.
Rather than opportunistic purchases, Tether’s approach is systematic: a portion of realized quarterly operating profits is converted into BTC, creating a steady accumulation process. The company’s earnings come mainly from the cash-like assets backing USDT, including short-term U.S. Treasuries and repurchase agreements. Higher rates and strong stablecoin demand boost profits, fueling further bitcoin acquisitions.
Unlike firms that raise external capital to buy BTC, Tether uses excess earnings as part of its internal treasury management. Most of its reserves remain in highly liquid instruments, ensuring stablecoin liabilities are fully backed while still diversifying into bitcoin.
The timing is notable. Bitcoin has struggled to sustain year-end rallies amid thinning liquidity and uneven risk appetite.
BTC was trading around $89,000 by mid-day Hong Kong time.
