Largest stablecoin issuer, Tetherrecently revealed a record net profit for the first half of this year. This is undoubtedly bullish for Bitcoingiven the company’s commitment to accumulating its flagship cryptocurrency using a portion of those profits.
Tether posts $5.2 billion in net profit
Tether revealed in its Certification report for Q2 that it reported a net operating profit of $5.2 billion in the first half of the year. This significant milestone came after the company reported a net profit of $1.3 billion in the second quarter of this year. Tether This record-breaking feat is a positive development for Bitcoin as a portion of the profits will be used to purchase the flagship cryptocurrency.
The stablecoin issuer is known to have started buying Bitcoins in September 2022 and has been increasing its Bitcoin holdings every quarter. In May 2023, the company took another step in strengthening their Bitcoin reserves allocating 15% of your net net profit to purchase more Bitcoins.
At the time, Tether already held almost $1.5 billion in BTC. Since then, its Bitcoin reserve has grown exponentially, data With Arkham Intelligence Chain Analytics Platform showing that the USDT issuer currently holds 75,354 BTC ($4.8 billion). Arkham data also shows that Tether’s Latest Bitcoin Purchase happened in March when they bought 8,888 BTC for $626 million.
Tether CEO Paolo Ardoino explained in a recent X (formerly Twitter) fasting that Tether’s investment arm bought Bitcoin in the second quarter of this year. However, it did not provide further information on whether the investment arm will now support its BTC purchases.
It’s also worth mentioning that Tether’s involvement in Bitcoin goes beyond just buying the flagship cryptocurrency. The stablecoin issuer has also taken steps to become a major Bitcoin miner. Last year, Ardoino revealed plans to build Bitcoin mines in Uruguay, Paraguay, and Savior while simultaneously acquiring shares in other Bitcoin mining companies.
Bitcoin’s Power on a Company’s Balance Sheet
Bill Miller IVPresident of the Management Board and Chief Investment Officer (CIO) of Miller Value Partners, recently featured how companies that have Bitcoin on their balance sheet give them an advantage and allow them to outperform their competitors. He also mentioned Micro strategywho has been buying Bitcoins since 2020, thanks to Co-Founder of the Company, Michael Saylor.
This “Bitcoin strategy” has undoubtedly worked for the software company, seeing how it has become more valuable with exposure to the flagship cryptocurrency. Miller noted that more companies are now looking to follow suit In the Footsteps of Microstrategyrealizing the power of Bitcoin.
At the time of writing, Bitcoin is trading at around $64,200, down more than 2% in the past 24 hours, according to data data from CoinMarketCap.
Featured image created with Dall.E, chart from Tradingview.com
