Tether Adds 8,888 Bitcoin in Q1, Boosting Holdings to Over $8.4B Despite Regulatory Pressures

Tether, the issuer of the USDT stablecoin, has significantly expanded its Bitcoin holdings in the first quarter of 2025. The company acquired 8,888 BTC, worth approximately $750 million at the time, bringing its total Bitcoin holdings to over 100,000 BTC, valued at around $8.46 billion. This strategic acquisition marks a notable increase in Tether's cryptocurrency portfolio, despite looming regulatory challenges that may force the company to adjust its reserves.

Tether's Bitcoin Acquisition and Its Growing Influence

According to on-chain data, Tether transferred the newly acquired Bitcoin from a Bitfinex address to a wallet it controls. The firm's holdings have steadily increased over the years, making Tether a powerful player in the crypto space. The move comes amid ongoing concerns about potential stablecoin regulations that could affect Tether's reserves. In February, reports suggested that Tether might be compelled to sell part of its Bitcoin holdings to comply with new US regulations targeting stablecoins. Analysts at JP Morgan raised concerns that a portion of Tether's assets—such as Bitcoin—may be considered non-compliant under the proposed bills.

Tether’s Bitcoin balance chart. Source: Arkham Intelligence

However, Tether has pushed back against these claims, asserting that the analysts misunderstood both Bitcoin and Tether’s operations. The company has emphasized that US stablecoin laws are still under development, and its current strategy remains unaffected by these speculative reports.

Tether's Expanding Investment Portfolio

Tether’s growth isn’t limited to its Bitcoin reserves. In 2024, the firm reported an impressive $13 billion in profits, which enabled the company to make several high-profile investments. Tether’s recent ventures include becoming the seventh-largest buyer of US Treasuries, surpassing countries such as Canada, Taiwan, and Mexico.

USDt minting, burning and Bitcoin price. Source: Whale Alert

The firm’s investments also span beyond traditional financial assets. In March 2025, Tether made a €10 million ($10.8 million) investment in Be Water, an Italian media company. Earlier, Tether acquired a majority stake in Juventus FC, one of Italy’s top football clubs, and expressed interest in purchasing a significant portion of the South American agribusiness Adecoagro. Additionally, Tether has been involved in the rapidly growing media sector, having invested $775 million in Rumble, a video platform, in late 2024.

These investments are indicative of Tether's growing influence and its desire to diversify its assets beyond digital currencies, solidifying its position as a global investment powerhouse.

The Continued Growth of USDT

Tether’s USDT stablecoin continues to dominate the market. As the world’s leading stablecoin, USDT has a total supply just under 148 billion, which places its market capitalization at nearly $148 billion. Tether has consistently minted large amounts of USDT, with the latest being a $1 billion minting on the Tron blockchain at the end of March. Historically, significant USDT minting has correlated with upward trends in Bitcoin’s price, suggesting that the expansion of stablecoin supply could play a pivotal role in broader cryptocurrency market growth.

David Pakman, managing partner at CoinFund, has projected that the global stablecoin supply could reach $1 trillion by the end of 2025, which would likely be a key catalyst for further expansion in the cryptocurrency market.