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The ongoing Bitcoin (BTC) price rally has proven to be highly beneficial for stablecoin issuer Tether Holdings Inc. The company has raked in about $1.1 billion in profit alone, an 85% jump in its portfolio valuation since adopting Bitcoin as one of its reserve assets earlier in the year.
Vladislav SopovIn May, Tether announced its plans to start allocating 15% of its net realized operating profits to purchasing Bitcoin (BTC). That decision has seen the firm acquire a total of 57,576 BTC worth approximately $2.4 billion at the current market valuation; however, they were purchased for an average price of $22,480 per Bitcoin.
Bitcoin has made impressive strides since the company decided to place its bet on Bitcoin. With prices rising as much as 150% year to date (YTD), Tether has seen its total Bitcoin stash grow by about 100%. The value of the company’s portfolio underscores another major positive milestone the company has made in recent times after confirming its plans for the top coin.
Besides the steady allocation into Bitcoin, Tether also plans to invest heavily in Bitcoin mining, a plan it has currently allocated up to $500 million for.
Bitcoin proponents in huge profits
While Tether’s success with its Bitcoin investment strategy in recent times is noteworthy, the firm is not the only major BTC backer with huge profits.
Yuri MolchanMicroStrategy, the non-crypto-native firm with an over 174,000 BTC stash has seen massively proportionate growth in its portfolio. MicroStrategy is a noteworthy example of a consistent Bitcoin backer as it has been accumulating Bitcoin since August 2020, with the latest acquisition coming this month.
Another top beneficiary of the Bitcoin rally is El Salvador, the Central American nation that adopted BTC as its official currency. As the country’s President Nayib Bukele noted, its Bitcoin has earned a profit of over $3 million.
Tomiwabold Olajide
Dan Burgin
Alex Dovbnya
Vladislav Sopov