Bitcoin, the world’s largest stablecoin, Tether‘s BTC holdings have seen a significant increase in value, reaching an impressive price of $44,000 in a short period of time. The company behind Tether has made a surprising profit of over $1 billion due to the increase in the cryptocurrency’s price. Tether has accumulated 4,083 BTC since May of this year.
According to data compiled by crypto analyst EmberCN, Tether currently holds approximately 57,576 BTC, which is equivalent to a value of around $2.4 billion. With an average purchase price of $22,480 per Bitcoin, this represents an 85% profit margin. The company has achieved unrealized gains of $1.1 billion since its BTC purchases.
The significant unrealized profit of Tether is mainly attributed to the recent increase in the price of Bitcoin. The largest cryptocurrency surpassed the $44,000 limit for a short period on November 5th and is currently trading above $43,000. Data shows a 14.5% increase in the price of the crypto king in the past 7 days.
The Bitcoin holdings of the company behind USDT can be divided into two categories: 53,492 BTC purchased before March of this year and 4,083 BTC purchased in May of this year. Additionally, Tether commits to allocate up to 15% of the constantly realized profit to Bitcoin.
Despite concerns about Bitcoin’s high volatility, Tether sees it as a flexible and long-term investment. This decision is part of the company’s strategy to expand its portfolio beyond traditional assets into cash and cash-equivalent assets.
In addition to increasing Bitcoin holdings, Tether plans to allocate more funds to Bitcoin mining as part of its expansion plans. The company announced in a recent audit report that it has a cash surplus exceeding $3 billion and plans to allocate $500 million to Bitcoin mining activities in the next six months.