How Bitcoin can benefit from Tether’s Q4 2023 growth

• Tether boasted of a large growth in Q4 2023.
• Social volume and activity around Tether grew, and USDT accumulation surged.

Despite the volatility in the crypto market over the past few months, Tether [USDT] has shown immense growth in terms of finances.

A lot of cash

The quarterly profit for Tether amounted to $2.85 billion. This included $1 billion in net operational profit from US Treasury bill interests and $1.85 billion from gold and Bitcoin [BTC] holdings.

The total profit for the year 2023 stood at $6.2 billion.

At press time, cash and cash equivalents covered 90% of all issued tokens, marking the highest percentage in recent years. Tether’s total exposure to US Treasury bills, both direct and indirect, was $80.3 billion.

Notably, the company maintained excess equity of $5.4 billion, representing undistributed profits beyond the 100% reserves held to back all issued tokens. This decision aims to enhance stability and resilience.

Furthermore, the accumulated excess equity exceeds the remaining secured loans, amounting to $5.4 billion versus $4.8 billion.

In 2023, Tether amassed sufficient excess equity to eliminate the impact of secured loans on token reserves.

In addition to these financials, Tether had a venture capital investments portfolio valued at $1.45 billion.

Tether Q4/2023 attestation is out.

My summary:

– profit for the quarter: $2.85B, of which ~$1B in net operational profit (mainly US t-bill interests), ~$1.85B from gold and #bitcoin holdings.

– total profit for 2023: $6.2B.

– cash & cash equivalents cover now 90% of all… https://t.co/AXjDw33QTc

— Paolo Ardoino 🤖 (@paoloardoino) January 31, 2024

Positive social activity

These factors have caused a massive spike in social mentions and volume around Tether. Many have started comparing Tether to large financial institutions.

This surge in social volume could help USDT attract more users. At press time, the network growth of USDT surged materially, suggesting that there was an influx of new addresses holding on to USDT.

BTC also stands to gain from the popularity of USDT, as BTC accumulation is one of the strategies deployed by Tether as a form of investment.