- Tether bought 8,888 BTC in Q1 2025, reinforcing its Bitcoin strategy despite a 12% market drop, solidifying its reserve diversification.
- With 92,647 BTC worth $7.64 billion, Tether’s growing holdings reduce selling pressure, signaling a long-term bullish stance.
- Binance halted USDT spot trading in the EEA due to MiCA regulations, impacting liquidity and pushing traders toward alternative stablecoins.
Tether has bought 8,888 BTC valued at $735 million in Q1 2025, becoming the sixth-largest Bitcoin holder, according to spot on chain. This is part of its May 2023 plan to invest 15% of its quarterly net realized profit in buying Bitcoin. Tether currently owns 92,647 BTC worth about $7.64 billion. Tether insists on its buying plan despite the 12% decline in Bitcoin in Q1 2025—the worst first-quarter performance since seven years ago.
Tether Strengthens Bitcoin Reserves
Tether’s Bitcoin acquisitions have been a strategic move to diversify its reserves. Historically, USDT reserves consisted of cash, short-term securities, and other traditional assets to maintain liquidity. However, increasing Bitcoin holdings introduces potential risks. Since the asset is highly volatile, price fluctuations could impact Tether’s overall reserve stability.
Tether keeps accumulating more Bitcoin in spite of market instability. According to Arkham Intelligence, the business took 8,888 Bitcoin out of a Bitfinex hot wallet. These withdrawals suggest a long-term holding strategy, which lessens the demand for short-term sales and increases the supply of Bitcoin. Consequently, investors generally view the rise as optimistic.
Regulatory Pressure on Tether and Binance
In addition to Tether’s Bitcoin holdings, regulatory issues are changing the cryptocurrency scene. Because of the Markets in Crypto-Assets Regulation (MiCA), Binance has stopped offering USDT spot trading pairs in the European Economic Area (EEA). By March 31, 2025, the exchange delisted some tokens that were not in compliance with the regulations.
Users can still hold the asset and trade it in perpetual contracts even though Binance has stopped USDT spot trading in the EEA. MiCA’s goal of harmonizing digital asset laws throughout the region is in line with this compliance action. However, it could impact USDT’s market liquidity within the EEA, potentially driving traders toward alternative stablecoins.
