"Tether Group is not considering a part of its reserves backing the issued token the investments made into sustainable energy, Bitcoin mining, data, and P2P technology. During Q3 2023 investments made into these fields reached US$ 668,891,473 (US$ 809,491,473 since the beginning of the year)"
What the fuck did Tether invest in here? The BTC on their balance sheet didn't go up substantially here. Is Tether putting massive capital into BTC mining? This would be a really interesting strategy, esp as we get closer to the halvening. Their team is smart -- I wonder what the rationale is here (vs. just buying ~700MM worth of BTC outright)
"Tether's quarterly returns from Cash and Cash Equivalent investments are once again at close to US $ 1 billion"
Tether is straight up printing $ here. They have 74B in US T-Bills as of Oct 31, 2023. With rates at 5.25 - 5.50, this return 3.885B - 4.07B per annum. Cash returns are post on if we prorate it to a quarterly basis.
2.1B in BTC, 3.4B in Gold, 4.1B in "Other"???
What is "Other"? And why does Tether hold more Gold than BTC? Given that they invested nearly 700MM in related BTC investments, would love to see these others go up
Their BTC holdings are up 500M as a result of the big spike in BTC prices. They have 4.3B in excess reserves, signaling strength and security.
"Tether’s Q3 attestation is a testament to our unwavering commitment to transparency, stability, and responsible financial management,” said Paolo Ardoino, CEO of Tether. “We've achieved the highest ever percentage of our reserves held in Cash and Cash Equivalents, signaling our dedication to maintaining liquidity and stability within the stablecoin ecosystem. […] Moreover, our investments in sustainable energy, Bitcoin mining, data, and P2P technology exemplify our commitment to building a more sustainable and inclusive financial future for all."
Paolo was promoted to CEO a few weeks ago. It’s good to see his confidence and leadership in running the business. Tether had committed to buying BTC with their profits but it’s clear they are taking a different direction now (BTC mining???). It will be interesting to see this plays out for them.
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