Tether CEO outlines strategy to expand dollar network while building Bitcoin and gold reserves
In brief
- Tether accumulated roughly 140 tons of gold valued at $23-24 billion through weekly purchases funded by operating profits
- Bitcoin holdings estimated at 83,000-100,000 BTC (over $8 billion) via 15% profit allocation since May 2023
- Bitcoin and gold represent 20-25% of Tether's total reserves alongside US Treasuries and cash
- Tether's $186 billion USDT circulation functions as a payments rail across Latin America, Africa, and Southeast Asia
Gold accumulation accelerates
Tether has been purchasing between 1 and 2 tons of gold weekly, accumulating approximately 140 tons valued at roughly $23-24 billion. Ardoino has indicated the company targets gold at approximately 10-15% of its investment portfolio. Critically, the purchases are funded not by minting more USDT, but by profits from Tether's core operations. This distinction matters for USDT holders: Tether earns yield on Treasury bonds and other instruments backing the stablecoin, while users get dollar exposure without interest.
The company has also launched Tether Gold (XAUT), a tokenized gold product that has been gaining traction, and has reportedly been hiring ex-HSBC traders to expand into gold trading operations.
Bitcoin as systemic hedge
Tether has been allocating up to 15% of its realized operating profits to Bitcoin since May 2023, building a position estimated between 83,000 and 100,000 BTC worth over $8 billion at current prices. Ardoino has described Bitcoin as a "digital inflation hedge" and, in more colorful terms, a crucial defense against what he called an "apocalyptic future."
Tether's Bitcoin purchases represent a steady, programmatic source of buying pressure. A company allocating 15% of multi-billion-dollar annual profits to one asset class creates consistent market impact.
Systemic relevance and reserves
Together, Bitcoin and gold positions represent about 20-25% of Tether's total reserves, with US Treasuries and cash equivalents making up the bulk. Tether earned an estimated $10-13.7 billion across 2024 and 2025, with expectations for 2026 running even higher. This earnings power funds both asset accumulation and the company's expansion into gold trading.
With approximately $186 billion in circulation, Tether's stablecoin dwarfs every competitor. In parts of Latin America, Africa, and Southeast Asia, USDT functions as a savings vehicle and payments rail in ways that rival local banking infrastructure.
The scale now carries systemic weight. Any shock to Tether's operations, whether regulatory, operational, or reputational, would send ripples through multiple asset classes simultaneously. The company has become a structural participant in Bitcoin, gold, and dollar markets all at once.
