Tether’s Quiet Bitcoin Play Challenges ETF Giants

Tether, the issuer of the USDT stablecoin, has emerged as a significant Bitcoin accumulator over the past year, surpassing most spot Bitcoin ETFs in terms of Bitcoin inflows. According to data shared by Tether CEO Paolo Ardoino on September 8, the company added over 27,700 BTC to its reserves in the last 12 months, with 7,900 BTC allocated directly to USDT reserves and an additional 19,800 BTC directed to its investment fund, Twenty One Capital (XXI) [1]. This accumulation places Tether ahead of several mid-tier ETFs, including VanEck’s HODL, but still behind larger players like BlackRock’s IBIT, which added 394,600 BTC to its holdings [1].

Tether's Bitcoin strategy involves diversifying its reserves among Bitcoin, gold, and real estate. The company began its structured Bitcoin acquisition in May 2023, allocating 15% of quarterly profits to the asset. This approach has positioned Tether as one of the few major corporations with a long-term commitment to investing in Bitcoin. As of now, the firm holds 100,521 BTC, valued at approximately $11.36 billion, and ranks as the third-largest corporate holder of Bitcoin globally [1].

Recent speculation about Tether selling Bitcoin to fund gold purchases was refuted by Ardoino, who clarified that any apparent reduction in visible Bitcoin reserves was due to transfers into XXI rather than liquidation. Samson Mow, CEO of Jan3, further supported this explanation, noting that Tether transferred 14,000 BTC to XXI in June and 5,800 BTC in July, resulting in a net increase in holdings [2]. The company’s Bitcoin holdings have grown by more than 10,000 BTC since Q1 2025, debunking claims of a sell-off.

Tether has also shown interest in expanding its investment portfolio to include gold. The firm is reportedly exploring investments across the gold supply chain, including mining, trading, and royalties [3]. Ardoino described gold as "natural Bitcoin," indicating the company’s belief in its role as a safe asset. Tether’s commitment to gold is evidenced by its recent $105 million minority investment in Elemental Altus, a gold royalty company [3]. The company’s multi-asset strategy reflects its aim to build a diversified reserve base that supports its stablecoin and long-term financial stability.

Despite Tether’s growing influence in the Bitcoin and gold markets, the firm’s Bitcoin accumulation remains modest compared to the largest ETFs. BlackRock’s IBIT and Grayscale’s Bitcoin Trust, for instance, have significantly larger holdings, with IBIT alone absorbing nearly 400,000 BTC in the same period [1]. Nonetheless, Tether’s steady accumulation of Bitcoin underscores its role as a key institutional buyer in the cryptocurrency market and highlights the increasing corporate interest in digital assets.

The company’s transparency and strategic allocation of profits into Bitcoin and other assets have contributed to its credibility among investors. While debates continue regarding the nature of Tether’s reserve management, the firm’s actions align with a broader trend of institutional adoption in the crypto space. As the corporate appetite for Bitcoin grows, Tether’s approach offers insights into how major players are integrating digital assets into their financial strategies.

Source: [1] Tether Surpasses Several ETFs to Become Top Bitcoin Accumulator (https://cryptoslate.com/tether-surpasses-several-etfs-to-become-top-bitcoin-accumulator/) [2] Tether Denies Bitcoin Sell-Off, Confirms Buying BTC, Gold and Land (https://cointelegraph.com/news/tether-denies-bitcoin-sell-off-invests-btc-gold-land) [3] Is Tether Dumping Its Massive Bitcoin Holdings? CEO Clarifies (https://www.mitrade.com/insights/news/live-news/article-3-1105859-20250909)