Tether, the company responsible for the world’s largest stablecoin, USDT, has noted a surge of over 1 billion USD in the value of its Bitcoin reserves in recent months.
As reported by Chinese journalist Colin Wu, Tether currently possesses 57,576 BTC with an average acquisition cost of 22,480 USD per BTC. This signifies an approximately 85% increase in the value of Tether’s BTC, amounting to 1.1 billion USD, since the company’s repurchase of BTC.
With the prevailing BTC price, the valuation of Tether’s BTC holdings has now exceeded 2.4 billion USD.
The unrealized profits have primarily expanded due to the significant uptrend in BTC prices observed yesterday. Bitcoin briefly surpassed the $44,000 threshold before retracing to the current value of $43,600. The cryptocurrency has marked a 15% increase over the past seven days.
In May 2023, Tether initiated a strategic move by allocating 15% of its net profits into Bitcoin, further expanding its substantial BTC investment portfolio. This strategic decision aims to diversify and strengthen Tether’s reserve holdings.
Tether has long regarded Bitcoin as a “long-term and robust investment,” regardless of its price volatility.
“Bitcoin has consistently demonstrated its recovery capabilities and emerged as a long-term store of value with significant growth potential,” stated Paolo Ardoino, Tether’s Chief Technology Officer.
The stablecoin issuer might have increased its Bitcoin reserves to diversify its asset holdings beyond cash and equivalents. Holding BTC and other assets allows Tether to safeguard its reserve assets from devaluation during extended economic downturns.
Nevertheless, Tether isn’t the sole beneficiary of Bitcoin’s rise. MicroStrategy, one of the major Bitcoin holders, has also witnessed unrealized gains nearing $2 billion as the BTC price exceeded $43,000.
As per the Saylor Tracker, the 174,530 Bitcoins held by MicroStrategy are valued at $7.32 billion. Consequently, the company’s current profit from its Bitcoin investment has reached $1,995,478,120, indicating a 37.47% increase.
By. Pham Thanh Bien
You might enjoy:
