Tether, issuer of the USDT stablecoin, has acquired 961 additional bitcoin worth $97.18 million during a recent market downturn, continuing its policy to allocate 15% of net profits to bitcoin.

This latest purchase brings Tether’s total bitcoin holdings to 87,296 BTC, valued at approximately $8.84 billion, according to on-chain analytics and public wallet data.

The company’s average purchase price stands at $49,121 per bitcoin, representing an unrealized profit of about $4.55 billion.

Tether’s ongoing bitcoin strategy

Since May 2023, Tether has followed a treasury strategy of converting a portion of its realized operating profits into bitcoin reserves.

The company typically executes these purchases at the end of each quarter but acted more opportunistically during the recent price dip, withdrawing the coins from Bitfinex.

Tether’s expanding bitcoin treasury places it among the world’s largest corporate holders, behind only a handful of entities.

Institutional conviction amid volatility

Market analysts suggest Tether’s move signals institutional conviction despite short-term market weakness. E

nmanuel Cardozo, a market analyst at Brickken, told Decrypt:

“Tether’s latest $97 million Bitcoin purchase reinforces a familiar institutional pattern: conviction buying during liquidity stress.”

Rachel Lin, CEO of SynFutures, added that Tether’s strategy reflects a broader move to diversify into hard assets, with bitcoin at the core of its treasury policy. She noted:

“It’s a vote of confidence in Bitcoin’s long-term fundamentals as fiat currencies continue to devalue.”

Market outlook and reaccumulation phase

Despite persistent volatility, industry experts believe the market may be entering a reaccumulation phase.

On-chain data show that a majority of bitcoin remains unmoved in wallets for months, a classic indicator of conviction among long-term holders.