The ongoing rally in the price of bitcoin (BTC) has proven to be highly beneficial for stablecoin issuer Tether Holdings Inc. The company has seen an 85% increase in its portfolio valuation since adopting bitcoin as one of its reserve assets earlier this year.
In May, Tether announced its plans to begin using 15% of its net realized operating profits to purchase bitcoin (BTC). This decision has seen the company purchase a total of 57,576 BTC, worth approximately $2.4 billion at current market valuations, at an average price of $22,480 per bitcoin.
Bitcoin has made impressive strides since the company decided to bet on it. With prices up as much as 150% year to date (YTD), Tether has seen its total bitcoin inventory grow by approximately 100%. The value of the company’s portfolio underscores another major positive milestone the company has reached recently after confirming its plans for the top coin.
In addition to the steady allocation in bitcoin, Tether also plans to , a plan for which it has currently allocated up to $500 million.
Bitcoin advocates in huge profits
While Tether’s recent success with its bitcoin investment strategy is noteworthy, the firm is not the only major BTC backer to reap huge profits.
MicroStrategy, the non-crypto-native firm with a stash of over 174,000 BTC, has seen massive proportional growth in its portfolio. MicroStrategy is a notable example of a consistent bitcoin backer, as it has been accumulating bitcoin since August 2020, with the arrival this month.
Another top beneficiary of the bitcoin rally is El Salvador, the Central American nation that adopted BTC as its official currency. As the country’s president, Nayib Bukele, noted, its bitcoin has generated a profit of over $3 million.
