Some purchases speak louder than any headline. 8,888.8888 BTC entered Tether’s treasury at the end of 2025 worth approximately $778 million to $780 million, strengthening Bitcoin’s position as a strategic player. Behind this number is a sustainable strategy that combines prudent reserves with predictable cash flows, which we will explore in this note.
As a company, Tether has designed a comprehensive business and operating model to generate predictable cash flow. You can grow your Bitcoin reserves without relying on external funds or taking on additional financial risks.
Starting in 2023, Tether will allocate up to 15% of its net operating income to Bitcoin purchases. Additionally, although the company has not released consolidated net profit details, the company’s latest report estimates annual profits to September 2025 to be well over $10 billion, and applying percentages, this equates to more than $150 million in BTC acquisition per year, potentially strengthening its strategic reserves and ensuring a continued flow of accumulation.
“Significant Beneficiary” Structure
As it is publicly known, Tether issues 1:1 backed tokens and maintains reserves that primarily cover liquid and relatively low-risk assets such as short-term U.S. Treasuries, repos, and cash equivalents.
In a high interest rate environment, This structure makes Tether a large beneficiary of the proceeds. Every dollar issued and properly backed not only maintains USDT parity but also generates constant interest, turning token circulation into a recurring source of operating income.
Unlike traditional banks, Tether does not pay users interest on their USDT holdings. This creates an important asymmetry. Users use stablecoins as a medium of exchange, temporary store of value, or liquidity tool. Tether captures reserve yield almost completely. This difference makes the business a structurally profitable scheme even without aggressive supply increases. Simply put, Tether makes money just by existing as a widely used financial infrastructure.
Regarding the above, the company’s CEO Paolo Ardoino explained in an interview with Bloomberg that this structure allows Tether to earn a 99% profit margin, making it a highly profitable and predictable model that does not rely on speculative activity in the Bitcoin market and can achieve a larger range of annual profits at modest costs.
Broadly speaking, the company has a revenue stream that does not depend on the price of Bitcoin, active trading, or speculative market conditions. It is a predictable, recurring operating income that allows companies to plan capital allocation without relying on external funding.
Meanwhile, the stablecoin market continues to expand, driven by the dominance of USDT and a clearer US regulatory framework, such as the GENIUS Act, which has strengthened investor and institutional confidence. In this context, Tether established itself as the second private company with the largest Bitcoin reserves. At the end of 2025, BTC reserves exceeded 96,000 Bitcoinsits value is over USD 8.4 billion, which strengthens its strategic investment capabilities within the ecosystem.
Tether surpasses USDT
Through its strategic arm Tether Investments, The company is pouring capital into areas such as Bitcoin mining, energy infrastructure, and technology.. We have built an ecosystem that diversifies our income and reduces external dependence. This strategy positions Tether not just as a stablecoin issuer, but as a financial holding company that can reinvest real profits into strategic assets.
For example, exposure to Bitcoin mining allows Tether to directly participate in the creation of assets, completing the cycle between asset generation, acquisition, storage, and accumulation in the treasury.
Unlike other companies in the space, such as Strategies, which relies on debt to grow and accumulate Bitcoin, Tether uses equity capital generated by its operations. This allows you to purchase BTC without issuing debt or incurring additional financial obligations, thus avoiding dilution, interest, and refinancing risks.
In parallel, as part of its asset expansion strategy, the company diversified its exposure to Bitcoin through Twenty One Capital, a financial vehicle backed by Bitfinex and other partners, transferring large amounts of BTC to the company. This additional accumulation vehicle allows Tether to complement its direct reserves and enhance its diversified approach that combines instant liquidity with specialized financial tools.
Their model is particularly resilient, ensuring that in both bull market and sideways scenarios, USDT demand and reserve performance will continue to generate profits and maintain the ability to continue accumulating Bitcoin over the long term.
