The largest stablecoin issuer, Tetherrecently revealed a record net profit for the first half of this year. This is undoubtedly a positive factor for bitcoinconsidering the company's commitment to accumulating the flagship cryptocurrency with some of these profits.
Tether posts net profit of $5.2 billion
Tether revealed in its Second Quarter Certification Report which posted a net operating profit of $5.2 billion for the first half of the year. This important milestone came after the company posted a net profit of $1.3 billion in the second quarter of this year. The belt This record achievement is a positive development for bitcoin because some of these profits will be used to purchase the flagship cryptocurrency.
The stablecoin issuer is known to have started buying bitcoin in September 2022 and has been increasing its bitcoin holdings every quarter. In May 2023, the company took a further step in bitcoin/” rel=”nofollow noopener” target=”_blank”>Strengthening their bitcoin reserves allocating 15% of its net realized profit to buying more bitcoin.
At that time, Tether already held nearly $1.5 billion worth of btc. Since then, its bitcoin reserve has grown exponentially, with data from the Arkham Intelligence on-chain analytics platform which shows that the USDT issuer now holds 75,354 btc ($4.8 billion). Arkham data also shows that bitcoin/” rel=”nofollow noopener” target=”_blank”>Tether's latest bitcoin purchase It came in March when they bought 8,888 btc for $626 million.
Paolo Ardoino, CEO of Tether clarified in a recent x (formerly twitter) x.com/paoloardoino/status/1818730496685199834″ rel=”nofollow” target=”_blank”>mail Tether’s investment arm purchased bitcoin in the second quarter of this year. However, it did not provide further information on whether or not the investment arm will handle its btc purchases from now on.
It's also worth mentioning that Tether's involvement with bitcoin goes beyond simply purchasing 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 The Savior while acquiring stakes in other bitcoin mining companies.
The power of bitcoin on a company's balance sheet
Bill Miller IVPresident and Chief Investment Officer (CIO) of Miller Value Partners, bitcoin-is-the-new-global-denominator-for-capital-says-miller-values-bill-miller-iv.html” rel=”nofollow noopener” target=”_blank”>Recently Featured how companies that have bitcoin on their balance sheet gives them an advantage and allows them to outperform their competitors. He also alluded to Microstrategywho has been acquiring bitcoin since 2020, thanks to the Company co-founder Michael Saylor.
This “bitcoin strategy” has certainly worked well for the software company, which has seen itself become more valuable thanks to its exposure to the flagship cryptocurrency. Miler noted that more companies are now looking to follow suit. Microstrategy's stepshaving realized the power of bitcoin.
At the time of writing, bitcoin is trading around $64,200, down more than 2% in the past 24 hours, according to bitcoin/” rel=”nofollow noopener” target=”_blank”>data from CoinMarketCap.
Featured image created with Dall.E, chart from Tradingview.com
