The $5.2 billion profit reported by USDT issuer Tether is a positive development for Bitcoin
Tether, the largest stablecoin issuer, recently reported a record net profit for the first half of the year. The company’s dedication to accumulating the flagship crypto with a portion of these revenues is undeniably favorable for Bitcoin.
Tether disclosed in its Q2 Attestation Disclosure that it recorded a net operating profit of $5.2 billion for the first half of the year. The company achieved this significant milestone by generating a net profit of $1.3 billion in the second quarter of this year. Bitcoin’s primary cryptocurrency will receive a portion of the revenues generated by Tether’s record-breaking achievement.
The Stablecoin Issuer is known to have commenced the acquisition of Bitcoin in September 2022 and has been increasing its Bitcoin holdings on a quarterly basis. The company enhanced its Bitcoin reserves in May 2023 by allocating 15% of its net realized profit to the acquisition of additional Bitcoin.
At that moment, Tether had already amassed nearly $1.5 billion in Bitcoin. Since that time, the USDT issuer has experienced an exponential increase in its Bitcoin reserve. According to data from the on-chain analytics platform Arkham Intelligence, the reserve currently sits at 75,354 BTC ($4.8 billion). Additionally, Arkham data indicates that Tether’s most recent Bitcoin acquisition occurred in March, when they acquired 8,888 BTC for $626 million.
In a recent X (formerly Twitter) post, Tether’s CEO, Paolo Ardoino, clarified that the investment branch of the company acquired Bitcoin during the second quarter of this year. Nevertheless, he did not furnish any additional information regarding whether or not the investment branch will be responsible for managing their BTC purchases in the future.
It is also important to note that Tether’s involvement with Bitcoin extends beyond the mere acquisition of the flagship cryptocurrency. Additionally, the stablecoin issuer has implemented measures to establish itself as a significant Bitcoin miner. Ardoino disclosed his intentions to construct Bitcoin mines in Uruguay, Paraguay, and El Salvador last year, in addition to acquiring stakes in other Bitcoin mining companies.
Bill Miller IV, the Chairman and Chief Investment Officer (CIO) of Miller Value Partners, recently emphasized the advantages that companies enjoy by having Bitcoin on their balance sheets, which enables them to outperform their competitors. Additionally, he referenced Microstrategy, which has been acquiring Bitcoin since 2020, as a result of the company’s co-founder, Michael Saylor.
The software company has unquestionably benefited from this “Bitcoin Strategy,” as it has become more valuable as a result of its exposure to the premier cryptocurrency. Miler observed that an increasing number of organizations are now seeking to emulate Microstrategy’s success, as they have come to understand the potential of Bitcoin.
According to CoinMarketCap data, Bitcoin is currently trading at approximately $64,200, a decrease of more than 2% in the past 24 hours.
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