Godfrey Benjamin
Tether has joined MicroStrategy and El Salvador in reaping huge profits from its Bitcoin bet
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The ongoing price rise of Bitcoin (BTC) has proven extremely beneficial for stablecoin issuer Tether Holdings Inc. The company has made a profit of around $1.1 billion alone, representing an 85% increase in portfolio valuation since introducing Bitcoin as one of its reserve assets earlier this year.
In May, Tether announced its plans to allocate 15% of its realized net operating profit to purchasing Bitcoin (BTC). This decision has resulted in the company acquiring a total of 57,576 BTC, worth approximately $2.4 billion at current market valuation; However, they were purchased for an average price of $22,480 per Bitcoin.
Bitcoin has made impressive progress since the company decided to bet on Bitcoin. As prices have increased by up to 150% year-to-date (YTD), Tether has increased its total Bitcoin supply by approximately 100%. The value of the company's portfolio highlights another major positive milestone the company has recently achieved after confirming its plans for the top coin.
In addition to the steady allocation to Bitcoin, Tether also plans to invest heavily in Bitcoin mining, a plan for which the company has currently committed up to $500 million.
Bitcoin proponents are making huge profits
Although Tether's recent success with its Bitcoin investment strategy has been notable, the company is not the only major BTC backer with huge profits.
MicroStrategy, the non-crypto company with a holding of over 174,000 BTC, saw huge proportional growth in its portfolio. MicroStrategy is a notable example of a consistent Bitcoin supporter, as the company has been accumulating Bitcoin since August 2020, with its latest acquisition coming this month.
Another major beneficiary of the Bitcoin rally is El Salvador, the Central American country that adopted BTC as its official currency. As the country's President Nayib Bukele noted, his Bitcoin has generated over $3 million in profits.
About the author
Godfrey Benjamin
Godfrey Benjamin is an experienced crypto journalist whose main goal is to educate everyone around him about the prospects of Web 3.0. His love for cryptocurrencies was born when, as a former banker, he discovered the obvious advantages of decentralized money over traditional payments. Due to his extensive experience in various aspects of Web3, Godfrey's articles have been published on Blockchain.news, Cryptonews and Coingape, among others.
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