Tether Records $1.1B Profit from Bitcoin Holdings

• Tether's Bitcoin Reserves Soar By More Than $1 Billion
• Significant Gains for Tether
• Tether's Bitcoin Investment Strategy
• Other Stakeholders Sharing in the Profit Increase

Tether's Bitcoin Reserves Soar By More Than $1 Billion

Tether$1.000 -0.12%, the company that owns the world's most prominent stablecoin, USDT, has reportedly seen a significant increase in the value of its Bitcoin$42,260 -0.64% reserves. The value has surged by over $1 billion recently. This piece of information comes from Colin Wu, a notable Chinese journalist, who reveals that Tether currently possesses 57,576 BTC, equivalent to approximately $2.4 billion. The average cost of acquiring each Bitcoin was valued at $22,480.

Significant Gains for Tether

This indicates that the Bitcoin holdings of Tether have seen an approximate 85% increase, translating into roughly $1.1 billion since its acquisition. Out of the overall BTC holdings, 53,492 BTC were secured before March of this year, and an additional 4,083 BTC were regularly purchased using 15% of Tether's assets.

The substantial rise in unrealized profits is primarily attributed to the recent surge in BTC's price. Bitcoin momentarily surpassed the $42,000 mark before settling at its current price of $41,845. The cryptocurrency has shown an impressive 13.1% increase over the previous seven days.

Tether's Bitcoin Investment Strategy

In May 2023, Tether unveiled plans to dedicate up to 15% of net realized profits towards ongoing Bitcoin acquisitions. The issuer of the dollar-anchored stablecoin regards Bitcoin as a potent long-term investment, notwithstanding its notorious volatility. Paolo Ardoino, the CTO of Tether, lauded Bitcoin for its resilience and potential for long-term growth.

This strategy likely prompted Tether to augment its Bitcoin holdings, diversifying its reserves beyond merely cash and its equivalents. By retaining BTC and other similar assets, Tether can protect its reserves from the depreciating purchasing power during extended periods of crypto downturns.

Other Stakeholders Sharing in the Profit Increase

However, the profit surge is not exclusive to Tether. MicroStrategy, one of the largest institutional Bitcoin holders, also saw its unrealized profit reach $2 billion following the recent price surge. As per the Saylor Tracker, MicroStrategy's Bitcoin stack is composed of 174,530 Bitcoins, having a total value of $7.32 billion. The all-time profit currently stands at an impressive $1,995,478,120, reflecting a surge of 37.47%.

Edited by Jonathan Stoker