December 7, 2023

Tether Sees Substantial 85% Profit Surge as Bitcoin Rally Boosts Portfolio

Tether Holdings Inc. has joined the ranks of MicroStrategy and El Salvador in experiencing significant gains from its strategic investment in bitcoin.

The ongoing surge in bitcoin prices has proven to be exceptionally lucrative for Tether Holdings Inc., the stablecoin issuer. The company has a staggering $1.1 billion in profit, marking an impressive 85% increase in its portfolio valuation since incorporating BTC as one of its reserve assets earlier this year.

In May, Tether unveiled its strategy to allocate 15% of its net realized operating profits to acquire bitcoin. This decision has resulted in the accumulation of 57,576 BTC, valued at approximately $2.4 billion in the current market. Notably, these bitcoins were acquired at an average price of $22,480 per bitcoin.

Tether's bold move to embrace bitcoin has paid off handsomely, with the cryptocurrency's prices surging by as much as 150% year to date (YTD). Consequently, Tether's bitcoin holdings have grown by approximately 100%, marking a significant milestone for the company. In addition to its consistent investment in bitcoin, Tether has earmarked up to $500 million for substantial investments in Bitcoin mining.

While Tether's recent success with its bitcoin investment strategy is noteworthy, it is not the sole major supporter of BTC reaping substantial profits. MicroStrategy, a non-crypto-native company with a substantial bitcoin stash exceeding 174,000 BTC, has witnessed proportionate growth in its portfolio. MicroStrategy has consistently accumulated bitcoin since August 2020, with its latest acquisition occurring this month.

Another notable beneficiary of the bitcoin rally is El Salvador, the Central American nation that officially adopted BTC as its currency. President Nayib Bukele highlighted that El Salvador's bitcoin holdings have generated profits exceeding $3 million.

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