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Tether, known for its USDT stablecoin, has recently made headlines with its Bitcoin holdings soaring in value, generating a <a href="https://x.com/WuBlockchain/status/1731875711403884686?s=20" target="_blank" rel="noopener nofollow">profit exceeding $1 billion</a>. 
Notably, this significant financial gain can be attributed to the stablecoin issuer’s approach of buying Bitcoin using a <a href="https://www.bloomberg.com/news/articles/2023-05-17/tether-to-purchase-bitcoin-as-part-of-reserves-strategy" target="_blank" rel="noopener nofollow">portion of its net profits</a>. This move has proven highly lucrative amid the <a href="https://www.newsbtc.com/bitcoin-news/bitcoin-unbreakable-floor-analyst-predicts-btc-wont-fall-below-35000-ever-again/" target="_blank" rel="noopener ">recent surge</a> in BTC prices. 
According to reporter Wu Blockchain, Tether’s holdings currently stand at 57,576 BTC, valued at an estimated $2.4 billion. These holdings were acquired at an average rate of $22,480 per BTC, reflecting a savvy investment strategy in the volatile crypto market. 
<blockquote class="twitter-tweet"> 
 Tether’s holdings of BTC currently have a profit of $1.1 billion (+85%). Tether currently holds a total of 57,576 BTC ($2.4B), with a cost of $22,480 per bitcoin. Among them, 53,492 BTC were reserved before March this year, and 4,083 BTC were purchased regularly using 15% of… 
 — Wu Blockchain (@WuBlockchain) <a href="https://twitter.com/WuBlockchain/status/1731875711403884686?ref_src=twsrc%5Etfw" target="_blank" rel="noopener nofollow">December 5, 2023</a>
</blockquote> 
The recent surge in Bitcoin’s value, which has surpassed the $41,000 mark, has been a major contributor to Tether’s significant profit margin, showcasing the potential of strategic crypto investments. 
<h2 id="btc-accumulation-and-market-impact">BTC Accumulation And Market Impact</h2> 
The notable profit realized by Tether is the result of its investment strategy implemented in May 2023. The company began allocating up to 15% of its net realized operating profits towards Bitcoin purchases. 
This strategic decision has not only diversified Tether’s <a href="https://www.newsbtc.com/bitcoin-news/bitcoin-alert-137-million-moved-by-long-sleeping-whale-market-braces-for-impact/" target="_blank" rel="noopener ">investment portfolio</a> but also aligned the company with Bitcoin’s potential as a “transformative” technology,&nbsp;according to Tether’s CTO Paolo Ardoino. 
Paolo Ardoino <a href="https://tether.to/en/tether-to-further-strengthen-reserves-through-purchase-of-bitcoin-with-realized-net-operating-profits/" target="_blank" rel="noopener nofollow">noted</a> that the choice to invest in Bitcoin was based on its decentralized nature, limited supply, and growing global adoption. Ardoino emphasized Bitcoin’s “resilience” as a “long-term store of value” and its potential to reshape business and lifestyle paradigms. 
The Tether CTO stated: 
<blockquote>
 Our investment in Bitcoin is not only a way to enhance the performance of our portfolio, but it is also a method of aligning ourselves with a transformative technology that has the potential to reshape the way we conduct business and live our lives.
</blockquote> 
As of the first quarter of 2023, Tether’s BTC reserves were <a href="https://tether.to/en/tethers-latest-q1-2023-assurance-report-shows-reserves-surplus-at-all-time-high-of-244b-up-148b-in-net-profit-new-categories-for-additional-transparency-reveals-bitcoin-and-gold-allocations/" target="_blank" rel="noopener nofollow">valued</a> at around $1.5 billion, a testament to the success of its Bitcoin accumulation strategy. 
<h2 id="bitcoin-rains-profits">Bitcoin Rains Profits</h2> 
The ongoing bull run in the <a href="https://www.newsbtc.com/news/ordi-rockets-to-unprecedented-peaks-alongside-bitcoins-42000-breakthrough/" target="_blank" rel="noopener ">crypto market</a> has benefitted Tether and other prominent Bitcoin proponents. Max Keiser, a well-known trader and BTC supporter in the crypto community, recently revealed a significant surge in his Bitcoin holdings on X. 
<blockquote class="twitter-tweet"> 
 I’m up 20,000,000% since 2011 with my <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw" rel="nofollow">#Bitcoin</a> <a href="https://t.co/nfj4AMSgmR" rel="nofollow">https://t.co/nfj4AMSgmR</a> 
 — Max Keiser (@maxkeiser) <a href="https://twitter.com/maxkeiser/status/1731816353437258056?ref_src=twsrc%5Etfw" target="_blank" rel="noopener nofollow">December 4, 2023</a>
</blockquote> 
Keiser, who has been investing in Bitcoin since 2011, recognized the potential of BTC early on. While Keiser has not publicly <a href="https://www.newsbtc.com/bitcoin-news/warning-signals-flash-as-bitcoin-surges-expert-spotlights-potential-25000-liquidity-sweep/" target="_blank" rel="noopener ">disclosed</a> the exact amount of BTC he owns, it’s clear that his early investment has paid off handsomely over the years. 
<img loading="lazy" decoding="async" class="size-medium" src="https://www.tradingview.com/x/2lQZ9c7i/" alt="Bitcoin (BTC) price chart on TradingView" width="2770" height="1496"> 
Featured image from iStock, Chart from TradingView

Tether Strikes Gold In Bitcoin: Profits Soar Above $1 Billion Amid Bull Market

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