Jack Dorsey Slams Tether’s $250K Bitcoin Dev Donation: “Why So Small?” (2025)
- Why Is Jack Dorsey Calling Out Tether’s Bitcoin Donation?
- How Does Dorsey’s Own Bitcoin Funding Compare?
- What’s the Controversy Around Ocean Mining?
- How Significant Is Tether’s Growing Bitcoin Treasury?
- What Could This Mean for Bitcoin Development Funding?
- FAQs: The Dorsey-Tether Bitcoin Funding Debate
Twitter co-founder and bitcoin maximalist Jack Dorsey has publicly criticized Tether’s $250,000 donation to Bitcoin developers, questioning why the stablecoin giant—which posted $13B profits last year—didn’t contribute more. The spat erupted after Tether CEO Paolo Ardoino announced the gift to OpenSats, a nonprofit supporting Bitcoin infrastructure. Dorsey, who’s donated over $21M to similar causes through his Start Small initiative, bluntly tweeted: “Why only $250k?” The debate has divided the crypto community, with some praising Dorsey’s advocacy while others criticize his investments in controversial mining pools. Meanwhile, Tether continues accumulating BTC, recently becoming the sixth-largest Bitcoin holder with 8,888 BTC ($9.75B).
Why Is Jack Dorsey Calling Out Tether’s Bitcoin Donation?
When Tether CEO Paolo Ardoino proudly announced their $250K donation to OpenSats on October 16, 2025, he probably didn’t expect backlash from one of Bitcoin’s most influential supporters. But Jack Dorsey—who’s essentially the Elon Musk of Bitcoin Twitter—responded within hours with a characteristically blunt tweet: “Why only $250K?” It’s a fair question when you consider Tether’s staggering $13B profit in 2024 and its plans for a $20B private placement that could value the company at $500B. In my experience watching crypto philanthropy, corporations usually donate amounts proportional to their market presence—and by that metric, Tether’s contribution looks oddly modest.
How Does Dorsey’s Own Bitcoin Funding Compare?
After Dorsey’s critique went viral, an X user challenged him to reveal his own contributions. The Square founder didn’t hesitate: “Over $21 million. You?” This refers to his Start Small initiative’s 2024 donation to OpenSats—84 times larger than Tether’s gift. I’ve followed Dorsey’s Bitcoin advocacy for years, and his financial commitment matches his rhetoric. From funding decentralized social media projects to sponsoring Bitcoin core developers, he walks the walk. But here’s the irony: while Dorsey criticizes Tether for underfunding, some in the community argue his investments in Ocean Mining contradict his pro-decentralization stance.
What’s the Controversy Around Ocean Mining?
Enter Udi Wertheimer, creator of the Taproot Wizards Ordinals project. Initially supporting Dorsey, he later called out the billionaire’s Ocean Mining investment: “You should subtract from that number whatever the size of your Ocean investment was.” The issue? Ocean has been accused of discouraging non-financial Bitcoin transactions—including the very Ordinals projects Wertheimer champions. It’s a classic crypto conflict: purists vs. innovators. As someone who’s seen multiple Bitcoin civil wars, I find it fascinating how even philanthropists like Dorsey can’t escape scrutiny in this ideologically charged space.
How Significant Is Tether’s Growing Bitcoin Treasury?
While the donation drama unfolds, Tether keeps quietly amassing BTC—8,888 coins in their latest purchase, per Cryptopolitan. With 66,465 BTC now worth $9.75B, they’re the sixth-largest Bitcoin holder globally. This isn’t just corporate treasury management; it’s a strategic bet on Bitcoin’s future. Given USDT’s dominance (60% of stablecoin market share per CoinMarketCap), their BTC accumulation could significantly impact market liquidity. Frankly, their $250K donation seems like pocket change compared to their billion-dollar Bitcoin bets.
What Could This Mean for Bitcoin Development Funding?
The Dorsey-Tether spat highlights a growing tension in crypto: corporate responsibility vs. decentralized ethos. Bitcoin development has historically relied on a mix of volunteer work and sporadic donations—a precarious model for infrastructure supporting a $1T+ asset. While Dorsey’s $21M sets a high bar, Tether’s response (or lack thereof) will test whether crypto giants feel obligated to fund the ecosystems that enrich them. Personally, I’d love to see more transparent, structured funding mechanisms rather than these public spats.
FAQs: The Dorsey-Tether Bitcoin Funding Debate
Why did Jack Dorsey criticize Tether’s donation?
Dorsey questioned why Tether—a company with $13B annual profits—only donated $250K to support Bitcoin developers, given the cryptocurrency’s importance to their business.
How much has Dorsey donated to Bitcoin causes?
Through his Start Small initiative, Dorsey has donated over $21 million to OpenSats and other Bitcoin development projects since 2024.
What is Tether’s current Bitcoin holdings?
As of October 2025, Tether holds 66,465 BTC worth approximately $9.75 billion, making them the sixth-largest Bitcoin holder globally.
What is the controversy around Ocean Mining?
Ocean Mining has faced criticism for allegedly discouraging non-financial Bitcoin transactions, including Ordinals inscriptions, which some view as contradicting Bitcoin’s censorship-resistant principles.
