Tether Buys 8,888 BTC in Q4, Raises Reserves to 96,185 BTC — Now Fifth-Largest Holder
Tether purchased 8,888 BTC in Q4 2025 (about $876m), bringing its total bitcoin reserves to 96,185 BTC (roughly $8.42bn). CEO Paolo Ardoino confirmed the buys. On-chain trackers (EmberCN, Arkham) observed related transfers, including a 961 BTC withdrawal from Bitfinex on Nov 7, 2025 and an 8,888.8 BTC deposit to a reserve address on Jan 1, 2026. Tether follows a treasury policy (announced May 2023) that directs up to 15% of quarterly realized operating profits into bitcoin; the company typically batches intra-quarter purchases and moves coins to cold reserve addresses near quarter boundaries to improve auditability. Reported average acquisition cost across Tether’s holdings is about $51,117 per BTC, implying roughly $3.5bn in unrealized gains at spot prices near $88.7k. The primary reserve wallet now ranks as the world’s fifth-largest BTC holder. The firm also pursued strategic initiatives such as Lightning infrastructure investment (Speed1), backing Ledn, and launching PearPass. Context: institutional activity around year-end included ETF flows and corporate buys, with BTC trading in the high-$80k range. For traders: Tether’s systematic, treasury-driven accumulation increases steady demand and can support price floors; its low average cost basis suggests a long-term holding bias; monitor on-chain transfers, USDT supply trends and spot ETF flows for short-term liquidity signals and potential volatility around large movements.
Bullish
Tether’s disclosed purchase of 8,888 BTC and total reserves of 96,185 BTC is likely bullish for BTC price because it represents a sizeable, predictable source of demand. Key points supporting a bullish categorization: (1) Systematic buying: Tether’s treasury rule to allocate up to 15% of quarterly realized profits to bitcoin creates recurring, programmatic demand that can provide a price floor over time. (2) Large scale and low cost basis: With an average acquisition price near $51k, Tether has significant unrealized gains and reduced incentive to sell into short-term dips, reducing potential supply pressure. (3) On-chain transparency: Batched buys and transfers to cold reserve addresses make flows verifiable, allowing traders to anticipate and monitor future accumulation. (4) Market context: End-of-year ETF activity and other institutional buys compound demand, helping support prices in the high-$80k band. Short-term caveats: large on-chain transfers or shifts in USDT supply could trigger volatility, and ETF flows remain mixed, so immediate price spikes are not guaranteed. Overall, the steady corporate accumulation signal favors sustained upside pressure rather than immediate sharp rallies.