Tether has made headlines by securing a position among the top five largest holders of Bitcoin (BTC) as it entered 2026. The stablecoin issuer acquired 8,888 BTC on December 31, 2025, which, at the time, was valued at approximately $779 million. This strategic move brought Tether”s total Bitcoin reserves to beyond 96,000 BTC, with the value of these holdings ranging between $8.4 billion and $8.5 billion as of January 1, 2026.
This acquisition is part of Tether”s broader strategy to diversify its reserves, which now includes Bitcoin as a core asset alongside cash, U.S. Treasuries, and gold. With over $140 billion worth of USDT tokens in circulation, the company has committed up to 15% of its quarterly profits toward Bitcoin purchases, thereby reinforcing its investment portfolio in physical gold and other reserve assets.
However, Tether”s expansion into Bitcoin comes under scrutiny due to increasing concerns about its transparency. In December 2025, S&P Global downgraded Tether”s stablecoin rating to “5 (weak),” the lowest grade on its newly introduced stablecoin risk scale. The agency pointed to “persistent gaps in disclosure” and a growing share of “high-risk assets” in Tether”s reserves, which encompass Bitcoin, gold, corporate bonds, secured loans, and various other investments.
In response to the downgrade, Tether expressed strong disagreement with S&P”s assessment, defending its track record of maintaining stability and ensuring the redeemability of USDT amid various financial crises.
Notably, Tether has also been quietly accumulating physical gold as part of its diversified reserve strategy, holding approximately 116 metric tons with a market value in the low-double-digit billions. This positions Tether as the largest non-sovereign gold holder globally, surpassing many private entities and investment funds.
Interestingly, Tether”s Bitcoin acquisition follows the company”s decision to shut down its Bitcoin mining operations in Uruguay due to unfavorable energy pricing. Despite this closure, Tether continues to demonstrate growth in its on-chain activity and reserves, signaling ongoing reinvestment in both Bitcoin and gold.
Concerns about Tether”s risk profile were recently highlighted by billionaire and BitMEX co-founder Arthur Hayes. In a post on X, Hayes remarked that Tether was “in the early innings of running a massive interest rate trade,” cautioning that its exposure to Bitcoin and gold could become vulnerable if global interest rates decline.
Defending Tether”s stance, CEO Paolo Ardoino referred to the company”s third-quarter attestation report, which revealed about $7 billion in excess reserves and close to $30 billion in total group equity. Tether reported $184.5 billion in stablecoin reserves against total assets nearing $215 billion, including around $23 billion in retained earnings and approximately $500 million in monthly profit from U.S. Treasury holdings.
As of the latest data, Bitcoin is trading at $87,847.04, reflecting the ongoing volatility and market dynamics within the cryptocurrency landscape.
