Tether nearly spent 100 million yuan to buy the dip! Bitcoin holdings amount to 87,296 coins, with an unrealized profit of 4.5 billion USD.

Tether acts as a “whale,” with on-chain data showing that on November 6th, Tether moved 961 Bitcoin from exchange addresses, valued at approximately $97.18 million. This is not an isolated event but part of the latest actions following the company’s 2023 policy to allocate 15% of net profits into Bitcoin. Tether’s Bitcoin holdings have accumulated to 87,296 BTC, estimated at $8.84 billion at current market prices.

Tether Continues Buying Despite Quarter-End Expectations

(Source: Arkham)

In the past, Tether often adjusted its assets at quarter-end. This early move reinforces the market’s confidence in the company’s ongoing buying strategy. On November 6th evening, on-chain data shows Tether withdrew 961 BTC from a CEX address, worth about $97.18 million. Since this is not quarter-end, such an unconventional move indicates a more flexible and proactive buying approach by Tether.

Traditionally, large institutions tend to rebalance assets at quarter-end to align with financial reporting and risk management needs. However, Tether chose to act in early November, possibly for two reasons. First, the company believes current prices are attractive enough to build positions early. Bitcoin retraced to around $100,000 in early November, presenting an ideal long-term buy window. Second, Tether may aim to avoid market front-running by maintaining continuous, unpredictable buying. If the market knew Tether only bought at quarter-end, prices might be driven up prematurely.

According to EmberCN monitoring, Tether’s series of buy orders have an average cost basis of about $49,121 per BTC. This is a critical figure, as it shows Tether’s Bitcoin investments have already achieved significant gains. With Bitcoin trading around $101,000, Tether’s unrealized gains have surpassed $4.549 billion, representing approximately a 106% return on investment.

Short-term volatility has not shaken Tether’s holdings; instead, it signals a strategy of “buying on dips.” During periods of sharp price swings, many institutional investors reduce holdings or exit, but Tether continues to buy. This contrarian approach demonstrates strong confidence in Bitcoin’s long-term value and a disregard for short-term market sentiment. Given the large circulation of USDT, each reserve reallocation can be seen as a barometer of crypto liquidity trends.

$15 Billion Annual Profit Supports Ongoing Purchases

Tether’s ability to make large-scale purchases is driven not just by Bitcoin holdings but by stable cash flows. The company estimates that by 2025, net profit could reach $15 billion, with over $10 billion already realized in the first three quarters. The primary source of profit is interest income from holding $135 billion in U.S. Treasuries. These earnings are managed separately from the reserves backing USDT.

A $15 billion annual net profit is top-tier among global corporations, exceeding the profits of many traditional banks and financial institutions. Tether’s profitability mainly stems from its unique business model: users deposit USD or other fiat currencies to buy USDT, which Tether invests in short-term U.S. Treasuries and money market funds to earn interest. USDT holders do not earn interest.

With a $135 billion U.S. Treasury holdings, Tether is among the largest holders of U.S. debt, surpassing some small countries’ foreign exchange reserves. Assuming an average yield of about 5%, these bonds could generate roughly $6.75 billion annually in interest income. Coupled with other investments and business revenues, reaching a $15 billion annual net profit is entirely feasible.

Following the policy of allocating 15% of net profits into Bitcoin, 15% of $15 billion equals $2.25 billion. At current Bitcoin prices of around $101,000, this could mean purchasing approximately 22,277 BTC in 2025. Such continuous and large-scale buying would provide stable demand support for Bitcoin’s market.

Tether’s Profit Model and Investment Strategy

Core Income: $135 billion in U.S. Treasuries generating about $6.75 billion annually in interest

Profit Scale: Estimated $15 billion in 2025, with over $10 billion already realized in the first three quarters

Bitcoin Allocation: 15% of net profit, estimated to buy about $2.25 billion worth of Bitcoin in 2025

Asset Diversification: $8.84 billion in Bitcoin + $12.9 billion in Gold

In addition to Bitcoin, Tether holds $12.9 billion in gold to diversify macro risk. This dual-asset strategy reflects Tether’s risk management approach. While both Bitcoin and gold are “hard assets,” they have different risk profiles. Bitcoin is highly volatile but offers growth potential; gold is less volatile but has limited upside. Combining both balances risk and return.

CEO’s Philosophy: Hard Assets for Long-Term Value Preservation

CEO Paolo Ardoino once said, “Bitcoin and gold represent non-inflatable hard assets that can better preserve value over the long term.” This statement reveals that Tether views Bitcoin as a foundational asset rather than a short-term speculation. In fiat systems, central banks can create money arbitrarily through quantitative easing, leading to long-term currency devaluation.

Bitcoin’s supply is strictly capped at 21 million coins, making it an ideal hedge against inflation. Gold also has scarcity, with supply growth limited by mining costs and extraction speed. Tether’s decision to allocate profits into these assets reflects concerns over long-term fiat devaluation and confidence in hard assets’ store of value.

This investment philosophy contrasts sharply with traditional corporate financial management. Most companies reinvest profits, pay dividends, or buy back shares, rarely allocating large sums into non-productive assets like Bitcoin and gold. Tether’s approach underscores its strategic positioning as a stablecoin issuer: its biggest risk is a crisis of trust in the fiat system. Holding hard assets provides a hedge against this risk.

From a Bitcoin holder’s perspective, Tether’s continued buying is a highly positive signal. When the world’s largest stablecoin issuer allocates billions into Bitcoin, it strongly endorses Bitcoin’s long-term value. Tether’s deep market insight and risk management capabilities mean its investment decisions are often more rational and forward-looking than average investors.

Market Signaling and Transparency Concerns

Tether’s actions are seen as a template for institutional “bottom-fishing,” potentially attracting other funds to follow suit. USDT itself is a primary liquidity source in crypto trading; when the issuer increases Bitcoin holdings, it adds a layer of demand. If other stablecoin issuers or institutional investors emulate Tether’s strategy, it could create sustained buying pressure, supporting Bitcoin’s price.

However, there are concerns about the expanding “secured loan” figures on Tether’s balance sheet, which now exceed its equity. Critics argue that Tether should disclose more details about its asset composition and risk exposure. While collateralized loans are protected by collateral, a significant decline in collateral value could still cause losses.

Nevertheless, Tether’s profit-driven coin accumulation and steady hard asset holdings inject confidence into the sluggish crypto market. Viewed as a compass, the company’s strategy of using profits to buy Bitcoin and gold creates a dual fortress, reducing reliance on the fiat system. This strategic thinking is especially prudent amid increasing global financial uncertainties.

The recent nearly $100 million withdrawal underscores Tether’s capital management and strategic resilience. In a world full of financial volatility, Tether leverages net profits to increase Bitcoin and gold holdings, sending a message that “hard assets reign supreme.” Each move by this crypto whale can ripple through the market, further elevating Bitcoin’s position in the global asset landscape.