The largest stablecoin issuer, Tether, not too long ago disclosed a file internet revenue for the primary half of this 12 months. This is undoubtedly bullish for Bitcoin, contemplating the corporate’s dedication to accumulating the flagship crypto with a few of these income.
Tether Records Net Profit Of $5.2 Billion
Tether revealed in its Q2 Attestation Report that it recorded a internet working revenue of $5.2 billion for the primary half of the 12 months. This important milestone got here as the corporate recorded a internet revenue of $1.3 billion within the second quarter of this 12 months. Tether’s record-breaking feat is a optimistic improvement for Bitcoin as a result of a few of these income shall be used to purchase the flagship crypto.
The Stablecoin Issuer is thought to have begun shopping for Bitcoin in September 2022 and has been including to its Bitcoin holdings each quarter. In May 2023, the corporate took an additional step in strengthening its Bitcoin reserves by allocating 15% of its internet realized revenue to buying extra Bitcoin.
At the time, Tether already held nearly $1.5 billion in BTC. Since then, its Bitcoin reserve has grown exponentially, with data from the on-chain analytics platform Arkham Intelligence exhibiting that the USDT issuer now holds 75,354 BTC ($4.8 billion). Data from Arkham additionally reveals that Tether’s last Bitcoin purchase got here in March after they purchased 8,888 BTC for $626 million.
Tether’s CEO Paolo Ardoino clarified in a latest X (previously Twitter) post that Tether’s funding arm purchased Bitcoin within the second quarter of this 12 months. However, he didn’t present additional data on whether or not or not the funding arm shall be dealing with their BTC purchases any more.
It can be price mentioning that Tether’s involvement with Bitcoin transcends simply buying the flagship crypto. The stablecoin issuer has additionally taken steps to develop into a significant Bitcoin miner. Last 12 months, Ardoino revealed plans to construct Bitcoin mines in Uruguay, Paraguay, and El Salvador whereas buying stakes in different Bitcoin mining firms.
The Power Of Bitcoin On A Company’s Balance Sheet
Bill Miller IV, the Chairman and Chief Investment Officer (CIO) of Miller Value Partners, recently highlighted how firms having Bitcoin on their steadiness sheet provides them an edge and permits them to outperform their rivals. He additionally alluded to Microstrategy, which has been buying Bitcoin since 2020, because of the company’s co-founder, Michael Saylor.
This ‘Bitcoin Strategy’ has undoubtedly labored out properly for the software program firm, seeing the way it has develop into extra helpful because of its publicity to the flagship crypto. Miler famous that extra firms are actually trying to observe in Microstrategy’s footsteps, having realized the facility of Bitcoin.
At the time of writing, Bitcoin is buying and selling at round $64,200, down over 2% within the final 24 hours, based on data from CoinMarketCap.
Featured picture created with Dall.E, chart from Tradingview.com
