On-chain analyst Ember reported that stablecoin issuer Tether has withdrawn 951 Bitcoin from the Bitfinex exchange, valued at approximately $70.47 million. These coins were sourced from 15% of Tether's quarterly profits, consistent with its announced allocation strategy to strengthen digital asset reserves.
Massive Reserve and Cost Basis
Following the transaction, Tether's public BTC reserve address now holds 97,141 Bitcoin, with a market value of around $7.2 billion. This makes it the fifth-largest Bitcoin wallet globally, trailing only select exchange cold wallets and institutions like Grayscale. On-chain data shows the average purchase price of these Bitcoin holdings is approximately $51,312 per BTC, resulting in an unrealized profit of roughly $2.175 billion at current prices.
Regular Profit Allocation
Tether has implemented a profit allocation plan since Q2 2023, directing a portion of quarterly net profits directly into Bitcoin purchases as additional reserves for USDT. This withdrawal represents the execution of the Q2 2026 profit allocation. The company previously disclosed that Bitcoin accounts for over 5% of its total reserves, with cash and cash equivalents still dominating.
Market Reaction and Transparency
The large withdrawal did not trigger significant Bitcoin price volatility, as the market has factored in Tether's recurring purchases. The continued accumulation is seen as a vote of institutional confidence, further reinforcing USDT's stability backing within the crypto ecosystem. Tether's regular reserve audits and Bitcoin holdings transparency remain key points of community interest.