Tether, the company behind the USDT stablecoin, has capitalized on a recent market downturn by purchasing an additional 961 bitcoin for $97.18 million. This latest acquisition boosts its total reserves to 87,296 BTC, now valued at approximately $8.84 billion. With an average purchase price of $49,121 per coin, the company’s bitcoin treasury holds an unrealized profit of around $4.55 billion.

A Strategic Allocation to Bitcoin

The purchase aligns with Tether’s ongoing treasury strategy, initiated in May 2023, to consistently allocate 15% of its net operating profits to bitcoin. While these acquisitions typically occur at the end of a quarter, this move was more opportunistic, with the coins being withdrawn from the Bitfinex exchange during a price dip. This growing reserve solidifies Tether’s position as one of the largest corporate holders of bitcoin globally.

A Signal of Institutional Confidence

Market analysts interpret the move as a sign of strong institutional belief in bitcoin despite short-term market weakness. Enmanuel Cardozo of Brickken suggested that Tether’s purchase demonstrates a familiar pattern of “conviction buying during liquidity stress.” Similarly, SynFutures CEO Rachel Lin noted that the strategy is part of a broader shift toward hard assets, viewing it as a vote of confidence in bitcoin’s long-term fundamentals as fiat currencies continue to devalue.

This institutional activity comes as many experts believe the market could be entering a reaccumulation phase. On-chain data supports this view, showing that a significant portion of bitcoin has remained unmoved for months—a classic indicator of strong conviction among long-term holders.