Tether’s Profitable Bitcoin Investment Strategy
Tether, a leading stablecoin issuer, has seen its investment strategy in Bitcoin pay off. The value of its BTC holdings has reached $2.4 billion, representing an increase of over 85% from the company’s average purchase price. This increase has resulted in an unrealized gain exceeding $1 billion, particularly after Bitcoin surpassed $40,000 for the first time since May 2022.
The Growth of Tether’s Bitcoin Reserves
Since May 2023, Tether has acquired an additional 4,083 BTC, bringing its total to 57,576 BTC. The company has revealed that it plans to use 15% of its net operating profits to invest in the flagship cryptocurrency. At the time of writing, Bitcoin is trading around $44,000, further strengthening the profitability of Tether’s BTC reserve.
Tether manages a $87 billion reserve consisting of US Treasury bonds, gold, and other assets. As of September 30th, the company had accumulated approximately $3.2 billion in cash surplus and invested $800 million of its profits in various areas related to industrial research.
In addition to increasing its Bitcoin holdings, Tether is also venturing into BTC mining. Last month, the company announced a cash surplus of over $3 billion and plans to allocate $500 million to Bitcoin mining expansion, with projects to establish mining sites in Uruguay, Paraguay, and El Salvador.
