tether: The billion giant with growing Bitcoin strategy and dominant market position

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Tether: A look at the company and its Bitcoin strategy

tether is a private company with an extremely profitable business model that mainly outputs US dollar stable stable. These stable coins are mainly covered by US state bonds. Thanks to the interest that Tether generates in this context, the company achieves billions in profits. In 2024, the company gain was an impressive $ 13.7 billion.

Tether has been building his Bitcoin reserve since September 2022. In May 2023, the company announced that it would invest 15 percent of its annual net profit in Bitcoin. This strategy differs fundamentally from that of listed companies such as Tesla or Microstrategy, which often emit new stocks or convertible bonds to finance their Bitcoin investments.

Although Tether primarily reinstates profits from his operational business in Bitcoin, the company plays an important role in the Bitcoin market. According to the data from BitcoinTreasuries.net, Tether takes third place behind Microstrategy (528,185 BTC) and Block.One (164,000 BTC) with an inventory of more than 164,000 Bitcoin. The Bitcoin strategy has proven to be successful for Tether; The company currently holds almost $ 4 billion in books from its Bitcoin investments.

tether is increasingly developing into an important buyer in the Bitcoin market. If the company's business model remains so lucrative, it can be expected that the Bitcoin reserve will grow significantly in the coming years. The US dollar stable USDT is currently the market leader with a market capitalization of over $ 140 billion, which is more than twice as much as the second-placed stablecoin, USDC.

The United States is currently planning to intensify the use of US dollar Stablecoins in order to secure the status of the US dollar as a world currency. It remains to be seen whether this will result in large US companies that can represent serious competition for Tether. In any case, however, this could further strengthen Tether's business model and consolidate its position in the market.