Tether Adds Nearly $800 Million in Bitcoin, Holdings Exceed 96,000 BTC

Tether added nearly 9,000 BTC to its reserves in Q4 2025, bringing its total holdings to 96,185 BTC valued at approximately $8.42 billion. This move aligns with its policy of allocating up to 15% of operating profits to Bitcoin accumulation quarterly.

The company executed a major on-chain transfer of 8,888.8 BTC to its reserve wallet on January 1, 2026, valued at around $778 million at the time according to reports. This transaction marked the final stage of Tether's Q4 accumulation process as data shows.

Tether's primary Bitcoin reserve wallet now ranks as the fifth-largest holder globally. The wallet's valuation stands at around $8.42 billion, according to data from blockchain monitoring firms.

Why Did This Happen?

Tether's accumulation strategy is part of a long-term treasury policy introduced in May 2023. Under this policy, the company allocates up to 15% of its quarterly profits to Bitcoin purchases. This approach has remained consistent since its implementation.

The company's purchases are executed through a structured process. Tether gradually builds its position throughout the quarter and consolidates the assets into its main reserve wallet at quarter-end or shortly thereafter. This method ensures transparency and allows for independent verification of its holdings.

What Is Tether's Strategy?

Tether's strategy emphasizes long-term value appreciation and reserve diversification. The company's average acquisition cost for these purchases is estimated at around $51,117 per BTC, resulting in unrealized gains exceeding $3.5 billion.

The strategy also involves allocating a portion of its Bitcoin holdings to affiliated entities. For example, Tether has transferred a significant amount of its Bitcoin to Twenty One Capital, which now holds 43,514 BTC as of January 1, 2026.

What Are Analysts Watching Next?

Tether's continued accumulation highlights the growing institutional interest in Bitcoin as a reserve asset. Despite recent market volatility, large firms like Strategy and Tether remain active buyers. Analysts are watching whether this trend continues as new investors enter the market according to market analysis.

The company's approach contrasts with some other stablecoin issuers who focus primarily on short-term securities. Tether's strategy includes diversifying its reserves across Bitcoin, gold, and traditional financial instruments.

Tether's Bitcoin purchases occur at period-end and are settled before attestation reports are issued. This timing allows the company to maintain accurate financial disclosures. Analysts are also monitoring how the company manages its gold reserves, which have grown to 116 tons as of Q3 2025 according to recent data.