The post Tether’s Bitcoin Holdings Reach New Highs, Generating Over $1 Billion in Profit appeared first on Coinpedia Fintech News
- Tether’s total BTC holdings are 57,576 BTC, worth $2.4 billion.
- The average purchase price of Tether’s BTC holdings is $22,480.
- Tether has acquired 4,083 BTC since May 2023, using 15% of its net profits.
Tether, the issuer of the world’s largest stablecoin, USDT, has benefited significantly from the recent rise in Bitcoin (BTC) prices. The company’s holdings of BTC, which are currently valued at over $2.4 billion, have generated a profit of over $1.1 billion. This windfall is due to Tether’s practice of purchasing BTC with a portion of its net profits. As BTC prices have soared $41.75 and the value of Tether’s BTC holdings has also increased, leading to substantial gains.
Bitcoin Holdings Yielding $1.1 Billion Profit
Tether’s BTC holdings consist of two distinct parts: 53,492 BTC that were reserved before March this year and 4,083 BTC that were purchased regularly starting in May 2023 using 15% of Tether’s net profits. The regular purchases demonstrate Tether’s growing confidence in the cryptocurrency market and its commitment to supporting the broader ecosystem.
The average purchase price for its BTC holdings stands at $22,480 per bitcoin, indicating that the company has capitalized on the recent surge in BTC prices. This strategic investment in BTC has significantly boosted Tether’s financial position and underscores its belief in the long-term growth potential of the cryptocurrency market.
Embracing New Investment Strategy
Tether has adopted a revised investment strategy centered on utilizing realized profits and allocating funds towards Bitcoin (BTC) purchases. This new approach marks a shift from considering unrealized capital gains and demonstrates Tether’s commitment to long-term growth and transparency.
In addition to investing in Bitcoin, Tether Group is focusing on building communication infrastructure through peer-to-peer technologies like Holepunch and energy infrastructure for Bitcoin mining. The company remains committed to maintaining the stability and security of its operations while exploring innovative opportunities in the digital asset landscape.
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