- Tether boasted of big growth in the fourth quarter of 2023.
- Social volume and activity around Tether increased, and USDT accumulation soared.
Despite the volatility in the crypto market in recent months, Tether is here to stay [USDT] has shown enormous growth in the financial field.
Lots of cash
Quarterly profit for Tether was $2.85 billion. This included $1 billion in net operating profit from US Treasury yields and $1.85 billion in gold and Bitcoin. [BTC] possessions.
Total profits for the year 2023 were $6.2 billion.
At the time of writing, cash and cash equivalents covered 90% of all tokens issued, the highest percentage in recent years. Tether’s total exposure to US government bonds, both direct and indirect, was $80.3 billion.
Notably, the company maintained a surplus of equity of $5.4 billion, representing undistributed profits in excess of the 100% reserves held to back all tokens issued. This decision aims to increase stability and resilience.
Additionally, accumulated excess equity exceeds remaining secured loans and amounts to $5.4 billion versus $4.8 billion.
By 2023, Tether amassed enough excess equity to eliminate the impact of secured loans on token reserves.
In addition to these financials, Tether had a portfolio of venture capital investments worth $1.45 billion.
Tether Q4/2023 attestation is out.
My summary:
– profit for the quarter: $2.85 billion, of which ~$1 billion in net operating profit (mainly US t-bill rates), ~$1.85 billion from gold and #bitcoin possessions.
– total profit for 2023: $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 huge spike in social mentions and volume around Tether. Many have started Compare Tether to major financial institutions.
This increase in social volume could help USDT attract more users. At the time of writing, USDT’s network growth was increasing significantly, indicating that there was an influx of new addresses holding USDT.
BTC can also benefit from the popularity of USDT, as BTC accumulation is one of the strategies employed by Tether as an investment form.
Source: Santiment