The largest stablecoin issuer, Tether, recently disclosed a record net profit for the first half of this year. This is undoubtedly bullish for Bitcoin, considering the company’s commitment to accumulating the flagship crypto with some of these profits.
Tether Records Net Profit Of $5.2 Billion
Tether revealed in its Q2 Attestation Report that it recorded a net operating profit of $5.2 billion for the first half of the year. This significant milestone came as the company recorded a net profit of $1.3 billion in the second quarter of this year. Tether’s record-breaking feat is a positive development for Bitcoin because some of these profits will be used to buy the flagship crypto.
The Stablecoin Issuer is known to have begun buying Bitcoin in September 2022 and has been adding to its Bitcoin holdings every quarter. In May 2023, the company took a further step in strengthening its Bitcoin reserves by allocating 15% of its net realized profit to purchasing more Bitcoin.
At the time, Tether already held almost $1.5 billion in BTC. Since then, its Bitcoin reserve has grown exponentially, with data from the on-chain analytics platform Arkham Intelligence showing that the USDT issuer now holds 75,354 BTC ($4.8 billion). Data from Arkham also shows that Tether’s last Bitcoin purchase came in March when they bought 8,888 BTC for $626 million.
Tether’s CEO Paolo Ardoino clarified in a recent X (formerly Twitter) post that Tether’s investment arm bought Bitcoin in the second quarter of this year. However, he didn’t provide further information on whether or not the investment arm will be handling their BTC purchases from now on.
It is also worth mentioning that Tether’s involvement with Bitcoin transcends just purchasing the flagship crypto. The stablecoin issuer has also taken steps to become a major Bitcoin miner. Last year, Ardoino revealed plans to build Bitcoin mines in Uruguay, Paraguay, and El Salvador while acquiring stakes in other Bitcoin mining companies.
The Power Of Bitcoin On A Company’s Balance Sheet
Bill Miller IV, the Chairman and Chief Investment Officer (CIO) of Miller Value Partners, recently highlighted how companies having Bitcoin on their balance sheet gives them an edge and allows them to outperform their competitors. He also alluded to Microstrategy, which has been acquiring Bitcoin since 2020, thanks to the company’s co-founder, Michael Saylor.
This ‘Bitcoin Strategy’ has undoubtedly worked out well for the software company, seeing how it has become more valuable thanks to its exposure to the flagship crypto. Miler noted that more companies are now looking to follow in Microstrategy’s footsteps, having realized the power of Bitcoin.
At the time of writing, Bitcoin is trading at around $64,200, down over 2% in the last 24 hours, according to data from CoinMarketCap.
You can get bonuses upto $100 FREE BONUS when you:
💰 Install these recommended apps:
💲 SocialGood - 100% Crypto Back on Everyday Shopping
💲 xPortal - The DeFi For The Next Billion
💲 CryptoTab Browser - Lightweight, fast, and ready to mine!
💰 Register on these recommended exchanges:
🟡 Binance🟡 Bitfinex🟡 Bitmart🟡 Bittrex🟡 Bitget
🟡 CoinEx🟡 Crypto.com🟡 Gate.io🟡 Huobi🟡 Kucoin.
Comments