Tether has strengthened its bitcoin reserves with a $1 billion purchase. The move underscores its ongoing strategy of utilizing Bitcoin to reinforce its treasury as it aims for a $500 billion valuation.

Tether Expands Bitcoin Treasury with Fresh Purchase

Tether, the issuer of the world’s largest stablecoin USDT, has added 8,888 BTC worth $1 billion on Tuesday to mark the close of the third quarter, according to blockchain data from Arkham Intelligence. The transfer was received from a Bitfinex wallet to an address linked to Tether’s bitcoin reserve. This highlights the company’s ongoing effort to back its treasury with the world’s leading cryptocurrency.

The latest purchase lifts Tether’s total holdings to 87,475 BTC, valued at between $10 billion. The acquisitions follow a pattern of end-of-quarter buying, with similar purchases recorded in March, June, and September of last year.

Tether began accumulating bitcoin in 2022. By May 2023, it had pledged to allocate 15% of its net profits every quarter into BTC. The company also holds more than 50 tons of gold and an estimated $127 billion in US Treasury, ranking it among the top 20 holders worldwide. Through its affiliate Twenty One Capital, Tether also supports one of the largest private bitcoin treasuries, over 43,000 BTC.

Stablecoin Growth and US Pivot

USDT, Tether’s leading stablecoin, continues to dominate the market. Its supply has grown by 10.7% over the past quarter, reaching nearly $175 billion. The token is now used by about 400 million people globally, with around 35 million new wallets added each quarter.

Originally built to support emerging markets with limited access to US dollars, USDT has become the backbone of cryptocurrency liquidity worldwide.

At the same time, Tether is preparing its first US-regulated stablecoin, USAT. The project is led by Bo Hines and developed under the GENIUS Act. This launch positions Tether to compete directly with Circle’s USDC, the dominant US-regulated stablecoin.

Fundraising Push and Valuation Drive

Beyond stablecoins and Bitcoin, Tether has widened its investments into AI, telecommunications, data centers, and energy. Despite having fewer than 200 employees, the company generated about $13 billion in profit in 2024.

Tether is also seeking to raise between $15 and $20 billion in equity, offering around 3% of its shares. The deal could value the company at nearly $500 billion, positioning it among the world’s most valuable private firms, alongside SpaceX and OpenAI. Cantor Fitzgerald is advising on the transaction.