The purchase aligns with Tether’s strategy of allocating up to 15% of its quarterly profits to bitcoin, a policy that has steadily transformed the world’s largest stablecoin issuer into one of the largest corporate holders of BTC.
The transfer, valued at roughly $780 million at current prices, underscores a long-term accumulation approach rather than a one-off trade. Since introducing the policy in 2023, Tether has committed a portion of its realized quarterly operating profits to bitcoin purchases, effectively positioning itself as a systematic buyer rather than an opportunistic one.
These accumulations are closely linked to Tether’s business model. The company’s profits are generated primarily from the cash-like assets backing USDT, including short-term U.S. Treasuries and repurchase agreements. As interest rates remain elevated and stablecoin demand stays strong, operating profits increase — creating a direct pipeline for additional bitcoin purchases.
Unlike corporate buyers that raise external capital specifically to acquire BTC, Tether’s strategy functions as an internal treasury allocation. Excess earnings are used to diversify reserves without drawing from the assets that back its stablecoin liabilities, while the bulk of reserves remain parked in highly liquid instruments.
The timing of the move is also notable. Bitcoin has struggled to sustain upside momentum into year-end, as liquidity has thinned across trading venues and risk appetite has remained uneven.
Bitcoin was trading around $89,000 by mid-day Hong Kong time.
