Tether's unrealized profit from bitcoin investments has exceeded $1,1 billion

Since May, the company has been allocating 15% of its profits to buy BTC

05.12.2023 - 09:38

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3 min

What’s new? As a result of bitcoin’s rise above the $41 600 mark, Tether’s unrealized profits from investing in the asset increased by 86% to over $1,1 billion. Currently, its accounts hold 57 576 coins purchased at an average price of $22 480. In addition, since May of this year, the company announced a new strategy in which it began to allocate 15% of net profits to the purchase of the first cryptocurrency every month. Since then, Tether has bought 4083 BTC.

Source: Twitter.com

Tether is the issuer of USDT, a USD-pegged stablecoin, which is the largest in its segment and ranks third in the overall ranking of cryptocurrencies by market capitalization, behind only BTC and ETH. As of December 5, the figure stands at $90,12 billion.

What else is known? In May, Tether said that the new investment strategy is aimed at diversifying reserves. At the same time, the company does not turn to third-party custodial institutions and independently stores the private keys of bitcoin wallets.

The management stressed that bitcoin since its emergence has become a long-term savings vehicle with significant growth potential, helped by its limited supply, decentralized system, and widespread use.

Tether инвестирует в майнинг биткоина 500 млн долларов в ближайшие полгода

Компания рассчитывает занять 1% в общемировом хешрейте BTC

Analytical software developer MicroStrategy, which is the largest holder of bitcoins among public companies, also saw a significant increase in unrealized gains. In Q4, the firm bought another 16 130 coins, bringing the total number of coins on its balance sheet to 174 530 at an average price of $30 252. Thus, as a result of BTC’s appreciation, unrealized gains reached $1,98 billion.

The El Salvador authorities’ investment in the first cryptocurrency also came in plus by $3,6 million. Since the legalization of BTC as a means of payment, officials have repeatedly invested in the asset, and from November 18 last year began buying 1 BTC each day.

Over the week, BTC rose by 12% and as of December 5, 09:00 UTC, it is trading on Binance at $41 603, the highest since April last year.

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