Tether (USDT) generates a record $1.1 Billion Bitcoin profit
Amid the Bitcoin price rally, the majority of the big Bitcoin investors are enjoying their profits.
Tether is a subsidiary of Bitfinex crypto exchange. This company manages all the financial activities behind USDT, the first-ranked US dollar-pegged stablecoin. Tether was the first to enter the crypto market with the stablecoin concept, in short, the company is enjoying the first mover advantage.
This year, Tether purchased Bitcoins at the average price of $22,480 per BTC. With the use of 15% company’s net profit investment increased the company’s Bitcoin holding to 57,576 BTC.
The majority of this amount of Bitcoin was purchased by Tether firm before March of this year, so obviously this company is in a huge profit.
According to Chinese crypto blogger Colin Wu, Tether’s Bitcoin investment profit hit $1.1 billion, as the trade price of Bitcoin hit $42k, which is an 85% return for this company against the investment.
Tether generates revenue with the help of USDT transaction fees and also lending some particular % of holding funds to the big companies in the form of high-interest loans.
Two years back, Tether faced high sales pressure following the reports by big media platforms, alleging that Tether provided huge amounts of loans to Chinese companies which were in the bankruptcy stage.
Because of the better financial health of Tether, all those reports failed to impact the USDT pegged value.
To fight against any kind of FUD or fake reports, Tether decided to report all the financial activities, including USDT reserve funds, monthly.
In early of this year, Tether grabbed huge numbers of USDT users because of the high regulatory uncertainty in the US. Because of multiple regulatory scrutiny on crypto companies & bankruptcy of crypto-friendly banks, Tether rival Circle (USDC) faced high downfall in terms of users as well as marketshare because many USDC stablecoin users shifted their funds from USDC to other stablecoins, including USDT as a top choice.
Read also: US Fund Managers update in their Bitcoin spot ETF applications
