Cryptocurrency

Bitcoin

April

Billion

Source: Adobe/Jim 
Tether, the company behind the world’s largest stablecoin, has witnessed a significant increase in the value of its <a href="https://cryptonews.com/coins/bitcoin/" rel="noopener noreferrer nofollow">Bitcoin (BTC)</a> reserves, surpassing $1 billion in profit.
According to data accumulated by crypto analyst EmberCN, Tether currently holds 57,576 BTC, equivalent to approximately $2.4 billion, with an average purchase price of $22,480 per coin.&nbsp;
This implies that Tether’s Bitcoin holdings have gained around 85%, or $1.1 billion, since their acquisition.
Tether <a href="https://twitter.com/Tether_to?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">@Tether_to</a> 持有的 <a href="https://twitter.com/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">$BTC</a> 目前已浮盈 11 亿美元(+85%)。
Tether 目前共计持有 57,576 BTC($2.4B)，综合成本 $22,480： 其中 53,492 BTC 为今年 3 月前储备，4,083 BTC 为今年 5 月开始使用 Tether 净利润的 15% 定期购买。
推文由 <a href="https://twitter.com/Bitget_zh?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">@Bitget_zh</a> 赞助
Tether 相关公告<a href="https://t.co/XsThnRA6Bs" rel="noopener noreferrer nofollow">https://t.co/XsThnRA6Bs</a> <a href="https://t.co/hkvEt0JN6Z" rel="noopener noreferrer nofollow">pic.twitter.com/hkvEt0JN6Z</a>
— 余烬 (@EmberCN) <a href="https://twitter.com/EmberCN/status/1731872734999871515?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">December 5, 2023</a>
The increase in Tether’s unrealized profit can be primarily attributed to the recent surge in BTC’s price.&nbsp;
Bitcoin briefly surpassed the $42,000 mark before settling at its current price of $41,845.
Over the past seven days, the cryptocurrency has experienced a 13.1% increase.
<h2 id="tether-allocates-15-of-net-profits-to-bitcoin-purchase">Tether Allocates 15% of Net Profits to Bitcoin Purchase</h2>
 In May 2023, Tether announced its plans to&nbsp;<a class="editor-rtfLink" href="https://cryptonews.com/news/tether-plans-15-of-its-net-profits-into-bitcoin-move-of-confidence.htm" target="_blank" rel="noopener noreferrer nofollow">allocate up to 15% of net realized profits</a>&nbsp;into Bitcoin on an ongoing basis.&nbsp;
Despite Bitcoin’s volatility, the stablecoin issuer views it as a robust long-term investment.&nbsp;
“Bitcoin has continually proven its resilience and has emerged as a long-term store of value with substantial growth potential,” Paolo Ardoino, Tether’s Chief Technology Officer, said at the time.&nbsp;
Tether’s decision to bolster its Bitcoin reserves is aimed at diversifying its holdings beyond cash and cash equivalents.&nbsp;
By holding BTC and other assets, Tether aims to protect its reserves from the loss of purchasing power during prolonged cryptocurrency market downturns.
Furthermore, the stablecoin issuer aims to&nbsp;<a class="editor-rtfLink" href="https://cryptonews.com/news/tether-aims-to-invest-half-a-billion-dollar-in-mining-ventures-over-next-six-months-to-become-a-top-miner.htm" target="_blank" rel="noopener noreferrer nofollow">invest half a billion dollars</a>&nbsp;to become one of the world’s leading Bitcoin miners.&nbsp;
The company’s investment strategy includes constructing its own mining facilities and acquiring stakes in other mining companies.
The new venture represents a significant departure from Tether’s primary business of running the USDT stablecoin, which maintains a one-to-one value with the US dollar.&nbsp;
Tether generates revenue by managing a reserve of US Treasury bills and other assets backing the USDT stablecoin.
As of September 30, the company had accumulated around $3.2 billion in excess cash.&nbsp;
<h2 id="microstrategy-s-bitcoin-profit-surpass-2-billion">Microstrategy’s Bitcoin Profit Surpass $2 Billion</h2>
 It is worth noting that Tether is not the only entity reaping the benefits of Bitcoin’s surge.&nbsp;
MicroStrategy, one of the largest institutional holders of Bitcoin, has also seen its unrealized&nbsp;<a class="editor-rtfLink" href="https://cryptonews.com/news/microstrategys-michael-saylor-is-now-in-almost-2-billion-profit-from-bitcoin-holdings-will-he-sell.htm" target="_blank" rel="noopener noreferrer nofollow">profit soar to $2 billion</a>.
Led by CEO turned Executive Chairman Michael Saylor, the technology company initiated its Bitcoin purchases in August 2020.&nbsp;
The company’s most recent acquisitions occurred last month, and as of November 30, MicroStrategy held 174,530 bitcoins acquired for $5.28 billion, with an average price of $30,252 per bitcoin.
With Bitcoin reaching $42,000 earlier on Monday, the value of MicroStrategy’s holdings rose to approximately $7.3 billion, resulting in a profit exceeding $2 billion.&nbsp;
Although the price has slightly retreated to $41,700 at the time of writing, it marks a significant milestone for Bitcoin, which hadn’t reached such levels since April 2022.
During the 2022 bear market, Bitcoin plummeted to under $16,000, causing MicroStrategy’s initial bet to be in the red.&nbsp;
Nevertheless, Saylor continued to accumulate Bitcoin, financing the purchases through a combination of debt and equity issuance.

Tether’s Bitcoin Holding Profit Surges to $1.1 Billion as Leading Cryptocurrency Surpasses $42,000

Table of Contents

Cryptonews.com

Other articles published on Dec 5, 2023

FTT’s Struggle to Break Above $5 Signals Potential Market Top

Qatar’s MBK Holding Pioneers $15 Million Investment in UK-Based QANplatform for Blockchain Innova...

Here’s Why $45,000 is the Turning Point for the Bitcoin Price Rally & Why it Needs to Achieve It

Can You Mobile Deposit a Money Order?

Bitcoin: BlackRock Received $100K As Spot BTC ETF Seed Fund

Watch Out for the Whales: Strategic Movements in the Crypto Market

Join our free newsletter for daily crypto updates!