Tether’s Big Bitcoin Bet Pays off With 85% Profit By U.Today

© Reuters. Tether’s Big Bitcoin Bet Pays off With 85% Profit

U.Today – The ongoing (BTC) price rally has proven to be highly beneficial for stablecoin issuer Holdings Inc. The company has in profit alone, an 85% jump in its portfolio valuation since adopting Bitcoin as one of its reserve assets earlier in the year.

In May, Tether announced its plans to start allocating 15% of its net realized operating profits to purchasing Bitcoin (BTC). That decision has seen the firm acquire a total of 57,576 BTC worth approximately $2.4 billion at the current market valuation; however, they were for an average price of $22,480 per Bitcoin.

Bitcoin has made impressive strides since the company decided to place its bet on Bitcoin. With prices rising as much as 150% year to date (YTD), Tether has seen its total Bitcoin stash grow by about 100%. The value of the company’s portfolio underscores another major positive milestone the company has made in recent times after confirming its plans for the top coin.

Besides the steady allocation into Bitcoin, Tether also plans to , a plan it has currently allocated up to $500 million for.

Bitcoin proponents in huge profits

While Tether’s success with its Bitcoin investment strategy in recent times is noteworthy, the firm is not the only major BTC backer with huge profits.

MicroStrategy, the non-crypto-native firm with an over 174,000 BTC stash has seen massively proportionate growth in its portfolio. MicroStrategy is a noteworthy example of a consistent Bitcoin backer as it has been accumulating Bitcoin since August 2020, with the coming this month.

Another top beneficiary of the Bitcoin rally is El Salvador, the Central American nation that adopted BTC as its official currency. As the country’s President Nayib Bukele noted, its Bitcoin has earned a profit of over $3 million.

This article was originally published on U.Today

Leave a Reply

Your email address will not be published. Required fields are marked *