Tether, the issuer of USDT, is accumulating Bitcoin aggressively in 2025. This strategic move raises questions about whether it is a defensive action against a potential USDT depeg.

Diving into specifics, Tether marketed itself as the largest multichain stablecoin by market capitalization, reportedly holding over 100,000 BTC recently acquired.

Tether’s Strategic Bitcoin Accumulation

According to data from Arkham, Tether has been increasing its Bitcoin holding, purchasing an additional 8,888 BTC in Q1 2025. This acquisition brought its total to a staggering 100,521 BTC.

Tether Bitcoin Holdings Tether’s blockchain data reveals its aggressive accumulation of Bitcoin over the past few months.

This growing stash positions Tether alongside major Bitcoin holders like MicroStrategy, which previously led the game. Speculations abound on whether Tether’s strategy is primarily aimed at safeguarding its USDT currency against fluctuations.

Will Tether Liquidate Bitcoin to Maintain Peg?

In the cryptocurrency community, there are rumors about Tether’s approach in case of a depeg situation. An analyst noted:

“Tether’s Bitcoin reserves could provide it with the liquidity needed to maintain the USDT peg if it fails, unlike its competitor, Circle, which faced delays in restoring its peg.”

The idea is that Tether could quickly liquidate some of its Bitcoin holdings to stabilize its currency without causing a panic in the broader market.

Tether’s Bitcoin Reserves

Currently, Tether claims all USDT in circulation is backed by cash and other liquid assets. However, there remains skepticism regarding the transparency of their reserves, as no thorough audits have verified these claims. Tether alleges that around 82.35% of its backing includes cash and cash equivalents.

Tether Reserve Allocation Sources indicate that Tether’s holdings breakdown may include a significant proportion of liquid treasuries.

In future depeg scenarios, analysts speculate that Tether might prioritize liquidating their Treasuries over Bitcoin to avert market instability. Despite its current momentum in Bitcoin accumulation, Tether’s overall stability remains uncertain.

Tether continues its strategy of stacking BTC, believing in its long-term value as cryptocurrency adoption rises in the U.S. Meanwhile, discussions surrounding Tether’s reserve composition and regulatory scrutiny will likely persist as the market evolves.