Stablecoin issuer Tether has rapidly expanded its bitcoin holdings over the past year, accumulating more coins than nearly all spot exchange-traded funds (ETFs) except the very largest.

Tether’s bitcoin accumulation strategy

On September 8, Tether CEO Paolo Ardoino shared data showing the company secured more than 27,700 BTC in the previous twelve months.

Of this total, around 7,900 BTC were placed directly into the reserves backing USDT, while approximately 19,800 BTC were allocated to Twenty One Capital, a digital asset treasury fund to which Tether contributes.

These purchases have positioned Tether ahead of several mid-tier ETF inflows, such as VanEck’s HODL, Bitwise’s BITB, Ark 21Shares’ ARKB, and WisdomTree’s BTCW.

However, Tether’s total still trails the largest players, including BlackRock’s IBIT, Grayscale’s mini Bitcoin trust, and Fidelity’s FBTC.

Reserve management and public scrutiny

Tether began its structured bitcoin acquisition in May 2023, pledging to allocate 15% of quarterly profits to the asset.

The company’s approach divides its bitcoin strategy between backing its stablecoin and building longer-term investment positions.

Ardoino recently addressed claims that Tether sold over $1 billion in bitcoin to fund a gold purchase, clarifying that the decline in visible reserves was due to transfers into Twenty One Capital rather than liquidations. Ardoino stated:

“Tether plans to maintain a diversified reserve strategy that includes bitcoin, gold, and real estate.”

Tether’s position among bitcoin holders

With total holdings now at 100,521 BTC—valued at roughly $11.36 billion—Tether is ranked as the third-largest corporate holder of bitcoin worldwide, following only MicroStrategy and Block.one.

The company’s ongoing accumulation signals a sustained commitment to bitcoin as both a reserve asset and long-term investment.