Tether Denies Bitcoin Sell-Off: The Truth Behind the $3.9 Billion Transfer Controversy (2025)

• Did Tether Really Sell Its Bitcoin Holdings?
• Industry Leaders Push Back Against Sell-Off Claims
• Bitcoin, Gold, and the Shifting Reserve Strategies
• Why the Confusion? A Look at the Data
• What’s Next for Tether’s Reserves?
• FAQs: The Tether Bitcoin Transfer Controversy

In a week filled with speculation, Tether has firmly denied claims that it liquidated part of its bitcoin reserves, clarifying that the $3.9 billion transfer was a strategic move to support Twenty One Capital (XXI). Blockchain data confirms the transaction, while industry leaders like Samson Mow and Paolo Ardoino have debunked rumors of a sell-off. Meanwhile, El Salvador’s recent gold purchase adds another layer to the evolving reserve strategies of major Bitcoin holders. Here’s the full story.

Did Tether Really Sell Its Bitcoin Holdings?

Rumors swirled this week after observers noted a decline in Tether’s reported Bitcoin reserves between Q1 and Q2 2025. Critics suggested the stablecoin issuer had sold off BTC to buy gold, pointing to BDO audit data showing a drop of over 9,000 BTC. The theory gained traction when YouTuber Clive Thompson speculated that Tether was strategically distancing itself from cryptocurrencies. But the truth, as it turns out, is far more interesting.

Industry Leaders Push Back Against Sell-Off Claims

Samson Mow, CEO of Jan3, quickly clarified that the "missing" Bitcoins weren’t sold but transferred to Twenty One Capital (XXI), an initiative linked to Strike CEO Jack Mallers. The June and July transfers totaled nearly 20,000 BTC—more than enough to explain the accounting discrepancy. Tether CEO Paolo Ardoino doubled down, tweeting: "Correct. Tether didn’t sell any Bitcoin. As Samson says below, it contributed part of its stash into XXI. While the world continues to get darker, Tether will continue to invest part of its profits into safe assets like Bitcoin, Gold, and Land. Tether is the Stable Company." Blockchain records show Tether moved 37,000 BTC (worth $3.9 billion at the time) to XXI in early June.

Bitcoin, Gold, and the Shifting Reserve Strategies

Independent trackers still rank Tether among the largest institutional Bitcoin holders, with over 100,000 BTC ($11+ billion). The controversy coincided with El Salvador’s headline-grabbing purchase of $50 million in gold—its first in 30 years—after years of accumulating Bitcoin. These moves highlight a broader trend: rather than abandoning BTC, institutions like Tether are diversifying reserves to include gold and other assets. As one BTCC analyst put it, "This isn’t an exit—it’s a hedging strategy for long-term stability."

Why the Confusion? A Look at the Data

The confusion stemmed from Tether’s quarterly reports, which showed reduced BTC holdings without immediate context. BDO’s audit confirmed the decrease but didn’t detail the XXI transfer. Meanwhile, gold’s resurgence as a reserve asset (per TradingView data) fueled speculation. "People see ‘less BTC’ and assume panic selling," said Mow. "In reality, it’s about deploying capital where it’s needed most."

What’s Next for Tether’s Reserves?

Tether’s transparency page still lists Bitcoin as a Core reserve asset, alongside gold and real estate. The XXI transfer aligns with its profit-investment strategy, though Ardoino hasn’t ruled out further diversification. With Bitcoin’s price showing bullish momentum (per CoinMarketCap), the move could prove prescient—or overly cautious. Either way, the market will be watching.

FAQs: The Tether Bitcoin Transfer Controversy

Did Tether sell its Bitcoin in 2025?

No. Tether transferred 37,000 BTC to Twenty One Capital (XXI) as part of a strategic investment, confirmed by blockchain data and CEO Paolo Ardoino.

Why did critics assume Tether was selling BTC?

BDO’s audit showed a 9,000+ BTC decrease in reserves, and Gold purchases by El Salvador created narrative overlap. Without context, some interpreted this as divestment.

How much Bitcoin does Tether still hold?

Over 100,000 BTC ($11+ billion), making it one of the largest institutional holders despite the XXI transfer.