{"id":20294,"date":"2025-04-02T17:32:07","date_gmt":"2025-04-02T17:32:07","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=20294"},"modified":"2025-04-02T17:32:07","modified_gmt":"2025-04-02T17:32:07","slug":"is-this-the-real-reason-why-tether-is-buying-bitcoin","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=20294","title":{"rendered":"Is This The Real Reason Why Tether Is Buying Bitcoin?"},"content":{"rendered":"<div>\n<p>Tether, the issuer of USDT, is stockpiling Bitcoin in 2025. Is this a strategic move to protect against a USDT depeg? In 2021, USDC depegged and couldn\u2019t restore the peg immediately because banks were closed.<\/p>\n<p><span data-preserver-spaces=\"true\">The world\u2019s largest multichain stablecoin by market cap\u2014has been aggressively accumulating Bitcoin over the past few months.<\/span><\/p>\n<h2><span data-preserver-spaces=\"true\">Tether Stockpiling Bitcoin: Is This A Strategic Move?<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">According to Arkham data, in Q1 2025, Tether, which has also invested in Bitcoin mining operations in Paraguay, bought 8,888 BTC, bringing its total holdings to 100,521 BTC.<\/span><\/p>\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"aligncenter wp-image-222039 size-full\" src=\"https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-02T173708.313.png\" alt=\"Tether, the issuer of USDT, is stockpiling Bitcoin in 2025. Is this a strategic move to protect against a USDT depeg?\" width=\"1894\" height=\"524\" srcset=\"https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-02T173708.313.png 1894w, https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-02T173708.313-300x83.png 300w, https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-02T173708.313-1024x283.png 1024w, https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-02T173708.313-768x212.png 768w, https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-02T173708.313-1536x425.png 1536w, https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-02T173708.313-50x14.png 50w, https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-02T173708.313-308x85.png 308w, https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-02T173708.313-350x97.png 350w\" sizes=\"(max-width: 1894px) 100vw, 1894px\"><\/p>\n<p><strong>(<a class=\"general-link\" href=\"https:\/\/intel.arkm.com\/explorer\/entity\/tether\" target=\"_blank\" rel=\"noopener nofollow\">Source<\/a>)<\/strong><\/p>\n<p><span data-preserver-spaces=\"true\">At this pace, Tether, a private firm whose shares are not traded on any exchange, is among the largest BTC holders, trailing Strategy (formerly MicroStrategy). However, it holds more BTC than <\/span><a class=\"general-link\" href=\"https:\/\/bitcointreasuries.net\/entities\/tesla\" target=\"_blank\" rel=\"noopener nofollow\"><span data-preserver-spaces=\"true\">Tesla<\/span><\/a><span data-preserver-spaces=\"true\">.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">This massive accumulation of BTC is why some on X believe the move is strategic and could significantly benefit the USDT issuer in case of a depeg.<\/span><\/p>\n<h2><span data-preserver-spaces=\"true\">Will Tether Sell Bitcoin If USDT Depegs?<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">In a post, an analyst said the decision to stockpile Bitcoin is \u201csomething underappreciated.\u201d <\/span><\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Something underappreciated about Tether is that if USDT ever goes temporarily off-peg (like what happened with USDC), they have 7.8bn in BTC to spend instantly to maintain the peg<\/p>\n<p>Whereas circle has all their money in banks, so repegging could take much longer (transfer delays)<\/p>\n<p>\u2014 0xngmi (@0xngmi) <a href=\"https:\/\/twitter.com\/0xngmi\/status\/1907357730353865025?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"nofollow\">April 2, 2025<\/a><\/p>\n<\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p><span data-preserver-spaces=\"true\">If USDT, which currently has a <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.coingecko.com\/en\/coins\/tether\" target=\"_blank\" rel=\"noopener nofollow\"><span data-preserver-spaces=\"true\">market cap<\/span><\/a><span data-preserver-spaces=\"true\"> of over $144 billion, depegs, Tether could quickly sell some of its BTC at spot rates and restore the peg without delays.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">He cites the USDC depeg of March 2023, in which Circle waited two days for banks to reopen before parity was restored.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Unlike its competitor, the analyst thinks Tether could sell part of its Bitcoin holdings to restore a depeg without causing panic in the crypto trading community.<\/span><\/p>\n<p><iframe loading=\"lazy\" title=\"The USDC De-Peg Explained\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/q19SYmnaXh0?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n<p><span data-preserver-spaces=\"true\">However, until a depeg event occurs\u2014like after the Terra collapse in 2022 when USDT briefly fell to $0.96 or when FTX collapsed, forcing USDT to $0.971\u2014it remains unknown whether Tether would sell Bitcoin as its first line of defense.<\/span><\/p>\n<h2><span data-preserver-spaces=\"true\">The Tether Bitcoin Reserve<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">Tether claims all USDT in circulation is backed by cash and other liquid equivalents, such as U.S. Treasury holdings. However, no official audit has confirmed the assets in its reserve. If anything, there is no discounting that they might be holding some of the <a class=\"general-link\" href=\"https:\/\/99bitcoins.com\/cryptocurrency\/best-meme-coin-icos\/\" target=\"_blank\" rel=\"noopener\">best meme coins to invest<\/a> in 2025.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">From the <\/span><span data-preserver-spaces=\"true\">Tether Transparency page<\/span><span data-preserver-spaces=\"true\">, the issuer holds 82.35% in cash and cash equivalents, including short-term U.S. Treasuries, as part of its reserve. Secured loans comprise 5.7% of the total reserve, while Bitcoin makes up 5.47%.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-222041 size-full\" src=\"https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-02T173729.536.png\" alt=\"Tether, the issuer of USDT, is stockpiling Bitcoin in 2025. Is this a strategic move to protect against a USDT depeg?\" width=\"1317\" height=\"450\" srcset=\"https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-02T173729.536.png 1317w, https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-02T173729.536-300x103.png 300w, https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-02T173729.536-1024x350.png 1024w, https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-02T173729.536-768x262.png 768w, https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-02T173729.536-50x17.png 50w, https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-02T173729.536-308x105.png 308w, https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/04\/Screenshot-2025-04-02T173729.536-350x120.png 350w\" sizes=\"auto, (max-width: 1317px) 100vw, 1317px\"><\/p>\n<p><strong>(<a class=\"general-link\" href=\"https:\/\/tether.to\/en\/transparency\/?tab=reports\" target=\"_blank\" rel=\"noopener nofollow\">Source<\/a>)<\/strong><\/p>\n<p><span data-preserver-spaces=\"true\">For now, if USDT depegs, Tether might liquidate its Treasuries before unloading Bitcoin. This move will be because Treasuries are more liquid than BTC. <\/span><\/p>\n<p><span data-preserver-spaces=\"true\">At the same time, selling Bitcoin in a crisis might destabilize the market further, exacerbating the problem and potentially causing more liquidity issues in the crypto market.<\/span><\/p>\n<h2><span data-preserver-spaces=\"true\">Is Bitcoin The Way?<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">Even so, Tether is committed to stacking BTC, which is relatively illiquid and more volatile than Treasuries. They are likely holding Bitcoin as a long-term investment rather than an emergency liquidity buffer, cementing its position as one of the <a class=\"general-link\" href=\"https:\/\/99bitcoins.com\/cryptocurrency\/best-crypto-to-buy\/\" target=\"_blank\" rel=\"noopener\">best cryptos to buy<\/a>.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">It is also strategic. With the United States prioritizing the creation of proper stablecoin laws and establishing a crypto and Bitcoin reserve, Tether is aligning with key developments. <\/span><\/p>\n<p><span data-preserver-spaces=\"true\">This approach will continue despite JPMorgan <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/decrypt.co\/305798\/tether-sell-bitcoin-meet-proposed-us-rules-jpmorgan\" target=\"_blank\" rel=\"noopener nofollow\"><span data-preserver-spaces=\"true\">claiming<\/span><\/a><span data-preserver-spaces=\"true\"> that some of Tether\u2019s reserves might include non-compliant assets like precious metals and corporate debt. <\/span><\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">JPM analysts are salty because they don&#8217;t own Bitcoin.<\/p>\n<p>\u2014 Paolo Ardoino <img decoding=\"async\" src=\"https:\/\/s.w.org\/images\/core\/emoji\/15.0.3\/72x72\/1f916.png\" alt=\"\ud83e\udd16\" class=\"wp-smiley\" style=\"height: 1em; max-height: 1em;\"> (@paoloardoino) <a href=\"https:\/\/twitter.com\/paoloardoino\/status\/1890012588559446245?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"nofollow\">February 13, 2025<\/a><\/p>\n<\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p><span data-preserver-spaces=\"true\">In response, Tether dismissed these concerns, saying JP Morgan is \u201csalty\u201d and doesn\u2019t own enough BTC.<\/span><\/p>\n<p><strong>DISCOVER: <\/strong><a class=\"general-link\" href=\"https:\/\/99bitcoins.com\/cryptocurrency\/high-risk-high-reward-crypto\/\" target=\"_blank\" rel=\"noopener\">9 High-Risk High-Reward Cryptos for 2025<\/a><\/p>\n<div class=\"nnbtc-key-takeaways\">\n<h3 class=\"nnbtc-key-takeaways__title\">Tether Bitcoin Strategy: Will It Sell BTC if USDT Depegs?<\/h3>\n<ul class=\"nnbtc-key-takeaways__list\">\n<li class=\"nnbtc-key-takeaways__list-item\">\n         <span data-preserver-spaces=\"true\">Tether Bitcoin Holdings exceeds 100,000 BTC<\/span><span data-preserver-spaces=\"true\">\u00a0<\/span>    <\/li>\n<li class=\"nnbtc-key-takeaways__list-item\">\n         <span data-preserver-spaces=\"true\">Will Tether sell Bitcoin if USDT depegs?<\/span><span data-preserver-spaces=\"true\">\u00a0<\/span>    <\/li>\n<li class=\"nnbtc-key-takeaways__list-item\">\n         <span data-preserver-spaces=\"true\">USDT issuer reserves mainly consist of liquid treasuries and cash<\/span>\u00a0    <\/li>\n<li class=\"nnbtc-key-takeaways__list-item\">\n         <span data-preserver-spaces=\"true\"> BTC is a strategic holding as crypto adoption picks up momentum in the U.S. <\/span>    <\/li>\n<\/ul><\/div>\n<p>The post <a href=\"https:\/\/99bitcoins.com\/news\/is-this-the-real-reason-why-tether-is-buying-bitcoin\/\">Is This The Real Reason Why Tether Is Buying Bitcoin?<\/a> appeared first on <a href=\"https:\/\/99bitcoins.com\/\">99Bitcoins<\/a>.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Tether, the issuer of USDT, is stockpiling Bitcoin in 2025. Is this a strategic move to protect against a USDT depeg? In 2021, USDC depegged and couldn\u2019t restore the peg immediately because banks were closed. The world\u2019s largest multichain stablecoin by market cap\u2014has been aggressively accumulating Bitcoin over the past few months. Tether Stockpiling Bitcoin: [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-20294","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/20294","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=20294"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/20294\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=20294"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=20294"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=20294"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}