Tether spent $1 billion to buy Bitcoin during the crash – unconfirmed reports
Rumors have been circulating in the crypto community that USDT issuer Tether spent $1 billion of its own reserves to buy Bitcoin during its decline below $86,000.
What really happened
The speculation began with a post by Crypto Chatter user X on the social network, featuring a screenshot from Arkham Intelligence. The image shows a transfer of $1 billion USDT from Tether's treasury to a Bitfinex deposit address. The transaction is indeed confirmed by blockchain data—such large transfers occur regularly for various internal company needs.
Tether transfers $1 billion USDT to Bitfinex. Source: Crypto Chatter
Transferring tokens between Tether addresses and its affiliated exchange, Bitfinex, is standard practice. The funds are used to replenish liquidity, prepare for stablecoin issuances or redemptions, and for other administrative purposes. However, there is no direct evidence that these tokens were immediately converted into Bitcoin.
Why analysts have doubts
Cryptoanalyst @ai_9684xtpa directly dismissed this interpretation as misguided. Transferring stablecoins to an exchange does not automatically translate into Bitcoin purchases. Confirming such large purchases requires seeing corresponding BTC withdrawals to the company's backup addresses—no such movements have been recorded.
Moreover, Tether's Bitcoin purchasing strategy is strictly regulated. Since May 2023, the company has systematically purchased cryptocurrency exclusively using 15% of realized quarterly profits, not USDT reserves. These reserves represent a liability to stablecoin holders and cannot be used for speculative investments.
Silence from official sources
Neither Tether nor its CEO, Paolo Ardoino, have made any statements about purchasing $1 billion worth of Bitcoin. Their official accounts and press releases contain no such information. The company's most recent major BTC acquisitions occurred at the end of quarters and were accompanied by public confirmations—for example, the purchase of 8,888 Bitcoin in September 2025 using profits.
Posts with the hashtag #TetherBuyTheDip have garnered hundreds of thousands of views on social media, but these are mostly reposts of the same screenshot without any additional on-chain confirmation. The market often reacts emotionally to such news, which can lead to unjustified price fluctuations.
Tether's next quarterly report is expected in January 2026, which could provide further insight into the company's reserves and investment activities.
Source: cryptonews.net
