How Bitcoin Can Benefit From Tether’s Growth In Q4 2023
- Tether recorded significant growth in the fourth quarter of 2023.
- Social volume and activity around Tether increased and USDT accumulation skyrocketed. Tether [USDT] has experienced incredible financial growth in recent months despite the volatility of the crypto market.
Lots of cash
Tether’s quarterly profit was $2.85 billion. Net operating income was $1 billion, coming from U.S. Treasury bills and $1.85 from gold and Bitcoin holdings (19459027).
Total profit for 2023 was $6.2 billion.
At the time of publication, 90% of all tokens were backed by cash or cash equivalents. This is the highest percentage in recent years. Tether’s direct and indirect exposure to U.S. Treasury bills was $80.3 billion.
The company had excess equity of $5.4 billion, representing profits not distributed beyond the 100% reserves to cover all tokens. This decision is intended to increase stability and resilience.
Additionally, excess equity exceeds remaining secured loans and amounts to $5.4 billion to $4.8 billion.
By 2023, Tether had accumulated enough excess equity to completely eliminate the impact of collateralized loans.
Tether also had a portfolio of venture capital investments worth $1.45 billion. Tether’s Q4/2023 certification is now available.
Summary:
Quarterly profit is $2.85 billion. This includes $1 billion in net operating income, primarily from US Treasuries, and $1.85 billion in gold and #Bitcoin. Total profit for 2023 is $6.2 billion.
– Cash and cash equivalents now cover 90% of all… https://t.co/AXjDw33QTc
– Paolo Ardoino (@paoloardoino) January 31, 2024
Positive social activity
These factors have led to a massive increase in social mentions and volume around Tether. Tether has been compared by many to large financial institutions.
The increase in social volume could help USDT attract new users. Network growth for USDT was much higher at press time, indicating a large number of new addresses were holding USDT. BTC also benefits from the popularity of USDT, as accumulating BTC was one of Tether’s investment strategies.
Santiment[196525]
