Tether Now Fifth-Largest Bitcoin Holder After $876M Buying Spree

Tether acquired 8,888 bitcoin in the fourth quarter of 2025, lifting its total holdings to 96,185 BTC, valued at $8.42 billion, and making it the fifth-largest bitcoin wallet globally.

The $876 million purchase reinforces the stablecoin issuer’s commitment to converting profits into bitcoin reserves, even as institutional appetite for the crypto remains strong despite recent market weakness, especially towards the end of Q4 2025.

The USDT issuer transferred 961 BTC, worth $97.18 million, from Bitfinex on November 7, followed by 8,888.8 BTC, valued at $778 million, on January 1, according to blockchain analytics firm EmberCN.

Tether maintains an average acquisition price of approximately $51,117 across its holdings, generating an unrealized profit of $3.524 billion at current valuations around $88,700 per coin.

Corporate Treasuries Double Down Amid Volatility

Goldman Sachs disclosed purchasing $1.7 billion worth of bitcoin ETFs while Strategy added 1,229 BTC for $108.8 million during the week ending December 28, bringing its treasury to 672,497 bitcoin acquired for $50.44 billion.

The purchases came as bitcoin slid toward $88,000 after failing to hold recent highs near $93,000, driven mainly by short-term price pressure.

Strategy funded its latest acquisition entirely through stock sales under its at-the-market offering program, generating proceeds equal to the bitcoin deployment without issuing preferred shares.

The company’s holdings now carry a 16% unrealized gain relative to its $74,997 average purchase price, while its market capitalization of $46 billion trades near parity with the value of its underlying bitcoin on an enterprise basis.

Japanese investment firm Metaplanet also added 4,279 BTC on December 30, bringing its total holdings to 35,102.

Bitcoin remains approximately 30% below its October all-time high of $126,080 despite trading volume surging 185% to $44.6 billion towards the end of 2025.

Strategic Expansion Beyond Stablecoin Operations

Tether’s bitcoin buying program operates under a policy announced in May 2023, committing 15% of quarterly profits to reserve purchases, typically executed on the final day of each quarter or the first day of the following period.

CEO Paolo Ardoino confirmed the Q4 acquisition, maintaining the company’s systematic approach to building bitcoin exposure as USDT circulation surpassed $183 billion.

Beyond treasury operations, Tether led an $8 million investment in Speed1 to develop Lightning Network payment infrastructure and backed crypto lender Ledn as the Bitcoin-backed lending market rebounds toward $60 billion by 2033.

“Speed is showing what Lightning can achieve when paired with a stable, liquid digital dollar like USDT,” Ardoino stated, framing the investments as an expansion of real-world payment utility.

The company also launched PearPass, a peer-to-peer password manager that eliminates cloud storage vulnerabilities, and pursued a rejected $1.17 billion bid for Juventus Football Club, which would have represented one of European football’s most ambitious crypto acquisitions.

Reports suggest Tether may seek $20 billion in new capital for a 3% ownership stake at a $500 billion valuation.

Market Outlook Balances Institutional Growth With Macro Headwinds

Bitcoin closed 2025 trading in a tight $86,500–$90,000 range as U.S. spot ETFs recorded a $355 million net inflow on December 31, breaking a seven-day outflow streak, led by BlackRock’s IBIT, which added $143.8 million.

The inflow followed total weekly outflows of $446 million ending December 29, with bitcoin products losing $443 million according to CoinShares data.

Industry executives expressed measured optimism for 2026 despite recent volatility.

“2025 has shaped up to be a landmark year for crypto, a year where digital assets moved decisively from niche innovation toward foundational financial infrastructure,” Raj Karkara, COO of ZebPay, told Cryptonews, citing regulatory progress including the GENIUS Act and CFTC approval of spot crypto products.

Timot Lamarre, Director of Market Research at Unchained, also identified competing capital flows as a dampening factor.

“In 2025, money that typically would find its way into Bitcoin found its way into other assets. Money seeking risk found its way into Bitcoin treasury companies or the AI industry, and money trying to avoid debasement continued piling into precious metals,” Lamarre explained.

He added that U.S. debt dynamics and potential monetary loosening could position bitcoin as “a leading beneficiary of cheaper and more abundant dollars” ahead.