Tether Acquires $459M Bitcoin for New BTC Treasury Venture

Tether has purchased $459 million worth of Bitcoin to establish Twenty One, a Bitcoin-native treasury company developed in partnership with SoftBank Group and Lightning Network architect Jack Mallers. This strategic move reinforces Tether’s growing influence in cryptocurrency infrastructure while expanding Bitcoin’s institutional adoption.

The transaction follows Tether’s record-breaking $13 billion profit in 2024 and aligns with its May 2023 commitment to allocate 15% of net profits to Bitcoin acquisitions. Blockchain analysts at Arkham Intelligence tracked the recent transfer of 8,404.5 BTC ($777 million at transaction time) to Tether’s reserves.

Twenty One emerges with a $3.6 billion enterprise valuation, funded through a combination of convertible notes and equity offerings. The structure enables immediate Bitcoin accumulation through Tether’s purchase commitment, creating one of the largest corporate BTC treasuries.

Tether’s Strategic Bitcoin Expansion

The stablecoin giant now holds 83,759 BTC ($7.75 billion) in corporate reserves after this latest acquisition. Tether’s Bitcoin strategy focuses on three key objectives:

• Hedging against traditional financial system risks
• Supporting Bitcoin network security
• Providing collateral backing for USDT stablecoin reserves

This acquisition represents Tether’s largest Bitcoin move since March 2024, when it added 8,888 BTC during Bitcoin’s first rally above $70,000.

Twenty One’s Novel Treasury Model

The new entity combines $540 million in funding through:

Twenty One’s structure enables automatic Bitcoin purchasing through predetermined price triggers, creating what Mallers describes as “programmatic dollar-cost averaging at institutional scale”.

Bitcoin Market Implications

At current prices near $84,863, Bitcoin’s market cap stands at $650 billion according to recent analysis. Tether’s acquisition represents:

• 0.07% of Bitcoin’s total supply
• 12.8% of daily trading volume
• 5.3% of Tether’s total reserves

Market analysts suggest this institutional demand could help stabilize Bitcoin’s price volatility while testing the cryptocurrency’s liquidity at current levels.

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The transaction underscores growing convergence between stablecoin issuers and Bitcoin’s monetary properties. As reported by Cointelegraph, Tether’s Bitcoin reserves now exceed the holdings of several national governments, potentially influencing regulatory discussions about cryptocurrency reserve requirements. This strategic move could pressure competing stablecoin issuers to increase their Bitcoin exposure while validating BTC’s role as corporate treasury asset.