Tether, which created the USDT stablecoin, has seen its Bitcoin investments soar, raking in profits of more than $1.1 billion.
The recent rise in Bitcoin prices, which managed to cross the $42,000 mark, has played a major role in the 85%+ jump in profits for Tether's BTC holdings.
In a recent X post, crypto journalist Colin Wu highlighted Tether's sizable stash of around 57,576 Bitcoins, now worth $2.4 billion, earned at an average of $22,480 each.
This significant profit they made came from Tether's strategy of buying Bitcoin using a portion of its net profits. Since May 2023, the company has dedicated 15% of its net profit to expanding its Bitcoin portfolio.
Tether's Q1 2023 Collateral Report revealed BTC holdings worth around $1.5 billion, this is their strategy to diversify and strengthen its reserves.
CTO Paolo Ardoino cited Bitcoin's decentralized nature, scarcity, and growing global acceptance as reasons for choosing it as an investment asset.
Ardoino believes that with its resilience and potential, Bitcoin will not only enhance Tether's portfolio but also align the company with technology capable of revolutionizing business and human lifestyle in the digital era.
Tether's strategic Bitcoin investment is beyond doubt and has paid off by earning tremendous profits.
