Tether's Impressive Financial Gains in 2023: A Deep Dive into Their Bitcoin Investment

Aug 6, 2023

Tether's Impressive Financial Gains in 2023: A Deep Dive into Their Bitcoin Investment

Aug 6, 2023

Tether's Impressive Financial Gains in 2023: A Deep Dive into Their Bitcoin Investment


In the bustling world of finance, predicting which companies will lead in profit margins is no easy task. However, in an unexpected twist for 2023, it seems that Tether might surpass the giants. Analysts predict that Tether's profits could reach an astounding $6 billion this year, overshadowing BlackRock's projected net income of $5.5 billion. But what's the story behind this lucrative surge? Let's unravel it.



Tether's Strategic Move to Bitcoin

Three months prior, Tether had made a significant announcement that grabbed the attention of many: they would allocate a whopping 15% of their substantial USDT treasury to Bitcoin. Such a bold move was bound to raise eyebrows and intrigue analysts like myself, leaving us pondering on the performance of this significant Bitcoin investment.



Crunching the Numbers

To get a clearer picture, I dove deep into the numbers. Here's the breakdown:

Average Cost Price: $22,149

Cost Basis: $1.2 billion

Current Value: $1.6 billion

BTC price as of today: $29,000

This evaluation indicates that Tether's Bitcoin holdings have soared to a 31% gain, translating to an impressive $376 million. When considering the volatility of the crypto market, this feat is indeed commendable.



Tether's Buying Strategy

What makes Tether's strategy so effective? Their approach is both systematic and consistent. Tether practices dollar-cost averaging into BTC, making their investments at the end of every month. Among their transactions, their largest was an astonishing 12,000 BTC, which equates to $348 million. They trust Bitfinex as their primary exchange platform.


It's essential to clarify a few points regarding this analysis:

The average cost basis analysis operates on the presumption that Tether transferred its funds to cold storage immediately post-purchase.


Pinning down the exact purchase price is challenging. Therefore, we've estimated it based on the price when assets were shifted to their wallet. It serves as a close enough proxy for our purposes.



Why Do We Think This Wallet Belongs to Tether?

Several clues indicate that the wallet in question belongs to Tether:

1. The BTC accumulation started around the same time Tether declared their investment plans.

2. Bitfinex, which has known affiliations with Tether, was the chosen platform for BTC acquisitions.

3. The buying patterns align seamlessly with Tether's quarterly reports.

For those curious to delve deeper into Tether's cold storage portfolio, you can explore it using the provided link.



The Bigger Picture: Top BTC Holders

With Tether making such waves, it brings to light the broader picture of the current most prominent BTC holders and their respective profits. Stay tuned, as I'll be delving into that soon. For those keen on keeping updated with such analyses, don't forget to subscribe and stay connected!


Note: The above analysis was conducted using Loch.

Here's a link to tether's cold storage portfolio. https://app.loch.one/home/bc1qjasf9z3h7w3jspkhtgatgpyvvzgpa2wwd2lr0eh5tx44reyn2k7sfc27a4

Tether's Impressive Financial Gains in 2023: A Deep Dive into Their Bitcoin Investment


In the bustling world of finance, predicting which companies will lead in profit margins is no easy task. However, in an unexpected twist for 2023, it seems that Tether might surpass the giants. Analysts predict that Tether's profits could reach an astounding $6 billion this year, overshadowing BlackRock's projected net income of $5.5 billion. But what's the story behind this lucrative surge? Let's unravel it.



Tether's Strategic Move to Bitcoin

Three months prior, Tether had made a significant announcement that grabbed the attention of many: they would allocate a whopping 15% of their substantial USDT treasury to Bitcoin. Such a bold move was bound to raise eyebrows and intrigue analysts like myself, leaving us pondering on the performance of this significant Bitcoin investment.



Crunching the Numbers

To get a clearer picture, I dove deep into the numbers. Here's the breakdown:

Average Cost Price: $22,149

Cost Basis: $1.2 billion

Current Value: $1.6 billion

BTC price as of today: $29,000

This evaluation indicates that Tether's Bitcoin holdings have soared to a 31% gain, translating to an impressive $376 million. When considering the volatility of the crypto market, this feat is indeed commendable.



Tether's Buying Strategy

What makes Tether's strategy so effective? Their approach is both systematic and consistent. Tether practices dollar-cost averaging into BTC, making their investments at the end of every month. Among their transactions, their largest was an astonishing 12,000 BTC, which equates to $348 million. They trust Bitfinex as their primary exchange platform.


It's essential to clarify a few points regarding this analysis:

The average cost basis analysis operates on the presumption that Tether transferred its funds to cold storage immediately post-purchase.


Pinning down the exact purchase price is challenging. Therefore, we've estimated it based on the price when assets were shifted to their wallet. It serves as a close enough proxy for our purposes.



Why Do We Think This Wallet Belongs to Tether?

Several clues indicate that the wallet in question belongs to Tether:

1. The BTC accumulation started around the same time Tether declared their investment plans.

2. Bitfinex, which has known affiliations with Tether, was the chosen platform for BTC acquisitions.

3. The buying patterns align seamlessly with Tether's quarterly reports.

For those curious to delve deeper into Tether's cold storage portfolio, you can explore it using the provided link.



The Bigger Picture: Top BTC Holders

With Tether making such waves, it brings to light the broader picture of the current most prominent BTC holders and their respective profits. Stay tuned, as I'll be delving into that soon. For those keen on keeping updated with such analyses, don't forget to subscribe and stay connected!


Note: The above analysis was conducted using Loch.

Here's a link to tether's cold storage portfolio. https://app.loch.one/home/bc1qjasf9z3h7w3jspkhtgatgpyvvzgpa2wwd2lr0eh5tx44reyn2k7sfc27a4

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Loch, Inc. © 2023

The content made available on this web page and our mobile applications ("Platform") is for informational purposes only. You should not construe any such information or other material as financial advice in any way. All information provided on the Platform is provided on an as is and available basis, based on the data provided by the end user on the Platform. Nothing contained on our Platform constitutes a solicitation, recommendation, endorsement, or offer by us or any third-party service provider to buy or sell any securities or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the securities laws of such jurisdiction. All content on this Platform is information of a general nature and does not address the circumstances of any particular individual or entity. Nothing in the Platform constitutes financial advice, nor does any information on the Platform constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content on the platform before making any decisions based on such information. In exchange for using the Platform, you agree not to hold us, our affiliates, or any third-party service provider liable for any possible claim for damages arising from any decision you make based on information or other content made available to you through the Platform.

2261 Market Street,

San Francisco, CA 94114

Loch, Inc. © 2023

The content made available on this web page and our mobile applications ("Platform") is for informational purposes only. You should not construe any such information or other material as financial advice in any way. All information provided on the Platform is provided on an as is and available basis, based on the data provided by the end user on the Platform. Nothing contained on our Platform constitutes a solicitation, recommendation, endorsement, or offer by us or any third-party service provider to buy or sell any securities or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the securities laws of such jurisdiction. All content on this Platform is information of a general nature and does not address the circumstances of any particular individual or entity. Nothing in the Platform constitutes financial advice, nor does any information on the Platform constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content on the platform before making any decisions based on such information. In exchange for using the Platform, you agree not to hold us, our affiliates, or any third-party service provider liable for any possible claim for damages arising from any decision you make based on information or other content made available to you through the Platform.

2261 Market Street,

San Francisco, CA 94114