- Tether expands Bitcoin reserves by acquiring 8,888 BTC in Q1 2025, bringing total holdings to 100,521 BTC worth $8.29 billion.
- USDT issuance surges with 1 billion minted on Tron, reflecting strong stablecoin demand as Tether dominates liquidity expansion.
- Regulatory shifts influence the stablecoin market as Tether exits Europe while Circle prepares for a USDC-backed IPO in April.
Tether has increased its Bitcoin reserves by acquiring 8,888 BTC in the first quarter of 2025, according to Lookonchain. The purchase, valued at $735 million, brings Tether’s total Bitcoin holdings to 100,521 BTC, worth approximately $8.29 billion. The move aligns with Tether’s ongoing strategy of using a portion of its profits to invest in Bitcoin.
Tether’s Recent Minting and Stablecoin Activity
Tether’s Bitcoin accumulation follows a series of substantial USDT issuances. On March 31, Lookonchain reported that Tether minted another 1 billion USDT on the Tron network. A similar minting occurred on March 28, supporting its role as the leading stablecoin issuer.
This large-scale USDT issuance indicates strong demand for stablecoins, particularly on Tron, which continues to dominate stablecoin transactions. Additionally, Whale Alert revealed that 140 million USDT was transferred from Bitfinex to Tether’s Treasury.
Another 1 billion USDT was minted at Tether Treasury, further increasing stablecoin liquidity. Over the past seven days, Lookonchain data showed that stablecoin supply on Tron grew by $1.21 billion, while Arbitrum saw a $438.4 million decline.
Tether’s Bitcoin Holdings and Market Trends
Spot On Chain reported that in May 2023, Tether announced plans to allocate 15% of its quarterly profits to Bitcoin purchases. The company acquires BTC gradually throughout the quarter before finalizing purchases at the end. Tether holds 92,647 BTC, valued at $7.64 billion, making it the sixth-largest Bitcoin holder.
Its estimated unrealized profit stands at $3.86 billion. The Bitcoin market faced a challenging first quarter in 2025, experiencing a 12% decline, the worst Q1 performance in seven years. Despite the downturn, Tether’s continued accumulation shows its confidence in Bitcoin’s long-term value.
Stablecoin Market News Amid Regulatory Changes
Tether’s expansion comes amid an increasingly competitive stablecoin market. Ripple recently launched RLUSD, intensifying competition among major issuers. Meanwhile, Circle, the issuer of USDC, is preparing for an IPO filing in April. If approved, its stock could begin trading on Wall Street as early as May.
Regulatory shifts also influence the market, particularly in Europe, where Tether has exited following the implementation of MiCA regulations. How regulatory changes and corporate strategies impact market stability and adoption, remains to be seen.
