Tether Makes Over $1.1 Billion Profit As Bitcoin Price Surges

Table of Contents

• Tether’s BTC Gamble Pays Off 
• A Resilient Long-Term Investment 
• Tether’s Foray Into Bitcoin Mining 

Tether’s Bitcoin strategy has paid off for the company in a big way after the company’s BTC holdings surged to $2.4 billion during the current market rally. 

Tether has recorded gains of over $1.1 billion from its Bitcoin investments, as the price of BTC surged to over $41,000, significantly boosting the value of the USDT issuer’s 57,576 BTC. 

Tether’s BTC Gamble Pays Off 

The price of Bitcoin (BTC) roared past the $42,000 mark this week. As a result, the company behind the USDT stablecoin saw a huge increase in the value of its BTC holdings, resulting in a staggering unrealized profit of over a billion. According to data sourced by crypto analyst EmberCN, Tether currently holds 57,576 BTC, having added 4023 BTC since May 2023. After Bitcoin’s recent surge, the value of Tether’s BTC stash stands at $2.4 billion, with the average price per Bitcoin at $22,480.

The price of Bitcoin has seen an unprecedented surge, with the current asset price at $43,772 and pushing toward the $44,000 mark. At Bitcoin’s current price, the value of Tether’s Bitcoin stash would be worth more than $2.4 billion. Most of Tether’s Bitcoin stash was purchased before March 2023, with the company adding 4023 BTC more since. 

A Resilient Long-Term Investment 

Despite concerns surrounding the volatility of Bitcoin, Tether has stated it views the asset as a resilient and long-term investment. The decision to invest in Bitcoin also aligns with Tether’s strategy to expand its portfolio beyond traditional assets such as cash and cash equivalents. Paolo Ardoino, Tether CEO, stated, 

“The decision to invest in Bitcoin, the world’s first and largest cryptocurrency, is underpinned by its strength and potential as an investment asset. Bitcoin has continually proven its resilience and has emerged as a long-term store of value with substantial growth potential. Its limited supply, decentralized nature, and widespread adoption have positioned Bitcoin as a favored choice among institutional and retail investors alike.”

Tether’s Foray Into Bitcoin Mining 

Apart from investing in Bitcoin, Tether has also made a move into Bitcoin mining. The company has outlined plans to inject more funds into Bitcoin mining as part of its expansion plans. The company had announced a cash surplus of over $3 billion in its attestation report last month. It also plans to earmark $500 million towards Bitcoin mining activities within the next 6 months. These funds will be used to construct Tether’s Bitcoin mining facilities and invest in existing Bitcoin mining businesses and ventures. This includes a $609 million debt financing facility recently given to European Bitcoin mining group Northern Data Group. 

Tether aims to become a significant player in Bitcoin mining and, according to Ardoino, hopes to corner 1% of the total Bitcoin mining computation power. 

“We are committed to being part of the Bitcoin mining ecosystem. When it comes to the expansions, building new substations and new sites, we are taking them extremely seriously.”

Tether is also working to increase its direct mining operations to 120 megawatts by the end of the year and hopes to attain a capacity of 430 megawatts by the end of 2025.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.