Tether, the company behind the world's largest stablecoin (USDT), has seen a significant increase in the value of its BTC-Bitcoin reserves, with profits exceeding $1 billion. According to data from crypto analyst EmberCN, Tether currently owns 57,576 BTC (worth the equivalent of... $2.4 billion) With an average cost per coin of $22,480, this indicates that the Bitcoin reserve has increased in value by 85% or $1.1 billion since it was purchased.
This increase in unrealized profit is due to the recent rise in the price of Bitcoin, which exceeded $42,000 for a short period before returning to the level of $41,845, and the price increase reached 13.1% over the past seven days.
Tether allocates 15% of net profit to buy Bitcoin (BTC)
In May 2023, Tether announced its plans to allocate 15% of the net profits achieved to buy Bitcoin on an ongoing basis. Despite the volatility of Bitcoin, Tether considers it a good investment in the long term. Paolo Ardoino, chief technical officer at Tether, stated that. Al-Waqt: “Bitcoin has continuously proven its solidity and has become an important store of value in the long term with significant potential for growth.” This decision aims to expand the company’s savings beyond owning cash and its equivalents.
By holding BTC and other assets, Tether aims to protect its savings from losing purchasing power during long periods of decline in the crypto market. The company also aims to invest half a billion dollars to become one of the largest Bitcoin miners in the world. The company’s investment strategy includes building mining facilities and purchasing shares. In other mining companies.
This project represents a new step for Tether away from its core business of managing the USDT stable currency, which maintains a 1-for-1 value with the US dollar. Tether achieves its profits from managing a reserve containing US treasury bonds and other assets that support the USDT currency. The company has collected $3.2 billion from the surplus. Financial statement as of September 30.
Microstrategy's profits from Bitcoin exceed $2 billion
It is worth noting that Tether is not the only entity that benefits from the rise in the price of Bitcoin. Microstrategy (one of the largest companies that own Bitcoins) also reaped $2 billion in unrealized profits from the recent rise, and the company began the process of buying Bitcoins in August 2020. Led by its CEO - who became Chairman of the Board of Directors - Michael Saylor.
In the last purchases that the company made last month, the company owned - on November 30 - 174,530 BTC currencies worth $5.28 billion at an average price of the currency amounting to $30,252, and the value of this stock rose to approximately $7.3 billion with the price of Bitcoin reaching $42,000 on Monday, which means its profits exceeded $2 billion.
Although the price has declined slightly to $41,700 at the time of writing the article, these prices are considered an important achievement for Bitcoin, as these levels have not been reached since April 2022. During the 2022 bear market, the price of Bitcoin fell to $16,000, making Microstrategy's bet a loser at first, but Saylor continued to collect Bitcoin and finance the purchases through debt and stock sales.
