Is this why Tether is buying Bitcoin?

Tether, the publisher of USDT, stocks up on Bitcoin in 2025. Is this a strategic move to protect against USDT Depeg? In 2021, USDC was inferior and the bank was closed, so it was unable to recover PEG immediately.

The world’s largest multi-chine stub coin by market capitalization has been actively accumulating Bitcoin over the past few months.

Tether Bitcoin Stockpiling: Is this a strategic move?

According to Arkham data, in the first quarter of 2025, Tether, which also invests in Paraguay’s Bitcoin mining business, purchased 8,888 BTC, bringing its total holdings of 100,521 BTC.

(sauce)

At this pace, Tether, a private company whose stocks are not traded in exchange, is one of the largest BTC holders, Trailing Strategy (formerly micro-strategic). However, it holds more BTC Tesla.

This massive accumulation of BTC is why some of X believe this move is strategic and will bring great benefits to USDT publishers in the case of DEPEG.

For USDT Depegs, does Tether sell Bitcoin?

In the post, the analyst said the decision to stockpile Bitcoin was “undervalued.”

What’s underestimated about tethers is that USDT has 7.8 billion in BTC to spend instantly to maintain PEG.

The circle has all the money in the bank, so the reflection can take more time (delay in transfer)

– 0xngmi (@0xngmi) April 2, 2025

In the case of USDT, the current Market capitalization Of the over $144 billion, Depegs, Tether was able to quickly sell some of the BTC at spot rates and recover PEG without delay.

He quotes USDC Depeg from March 2023. Among them, the circle waited two days for the bank to resume before parity recovered.

Unlike its competitors, analysts believe Tether can sell some of its Bitcoin Holdings to recover DEPEG without causing panic in the crypto trading community.

However, it is unclear if Tether will sell Bitcoin as the first line of defense until the 2022 Terra collapse, when USDT temporarily fell to $0.96, or if FTX collapses, if they force USDT to $0.971, until a DEPEG event occurs.

Tether Bitcoin Reserve

Tether is supported by cash and other liquid equivalents, such as US Treasury holdings, claiming that all USDT is in circulation. However, the official audit does not confirm the assets of the reserve. If anything, there’s no discount that you might have some of the best meme coins to invest in 2025.

from Tether Transparency Pagethe issuer holds 82.35%, the equivalent of cash and cash, including the short-term US Treasury, as part of the reserve. Protected loans account for 5.7% of the total reserve, while Bitcoin accounts for 5.47%.

(sauce)

For now, in the case of USDT Depegs, Tether may settle the Treasury before unloading Bitcoin. This move is because the Ministry of Finance is more liquid than BTC.

At the same time, putting Bitcoin in crisis and selling it could make the market even more unstable, exacerbate the problem and cause more liquidity issues in the crypto market.

Is Bitcoin the road?

Still, Tether is working on stacking BTC. They are likely to hold Bitcoin as a long-term investment rather than an emergency liquidity buffer, and have solidified their position as one of the best cryptos to buy.

It’s also strategic. Tether is tailoring critical developments with the US prioritizing the creation of appropriate stubcoin laws and establishing crypto and Bitcoin reserves.

This approach continues despite JPMorgan Claim Some of the reserves of tethers can include non-compliant assets such as precious metals and corporate liabilities.

JPM analysts are salty because they don’t own Bitcoin.

– Paolo Aldoino (@paoloardoino) February 13, 2025

In response, Tether dismissed these concerns, saying that JP Morgan is “salted” and does not own enough BTC.

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Is the post the real reason Tether is buying bitcoin? It first appeared in 99 Bitcoin.