Bitcoin and Gold Price Appreciation Drive Tether's Financial Success
In the fourth quarter of 2023, Tether Holdings Limited achieved an unprecedented milestone with a net profit of $2.85 billion. This remarkable achievement contributed to Tether's overall net profit of $6.2 billion for the year. Tether's secured loans, totaling $4.8 billion, were fully backed by excess reserves amounting to $5.4 billion.
The consolidated reserves report (CRR) released by Tether Holdings Limited reveals that the stablecoin issuer's net profit in Q4 2023 soared to $2.85 billion. Out of this amount, $1 billion was generated from interest on Tether's U.S. treasuries holdings, while the remaining portion primarily resulted from the appreciation of gold and bitcoin reserves.
For the entire year of 2023, Tether's net profit reached an impressive $6.2 billion. Approximately $4 billion of this sum was derived from net operating profits generated by U.S. Treasuries, Reverse Repo, and Money market funds. The remaining $2.2 billion was generated through other asset classes.
Alongside its outstanding financial performance, Tether Holdings Limited witnessed a substantial increase in excess reserves, which surged by $2.2 billion to a closing balance of $5.4 billion. Consequently, Tether's secured loans of $4.8 billion, backed by highly liquid assets, were fully covered by these undistributed accumulated profits.
Paolo Ardoino, the CEO of Tether, expressed his satisfaction with the stablecoin issuer's financial achievements and the recent BDO attestation. He emphasized Tether's commitment to transparency, stability, and responsible financial management. The significant net profits earned in both the final quarter and throughout the year, totaling $6.2 billion, serve as a testament to Tether's robust financial position.
Furthermore, Ardoino highlighted Tether's investments in sustainable energy, bitcoin (BTC) mining, artificial intelligence (AI), and peer-to-peer technology. These investments reflect Tether's dedication to fostering an inclusive financial future.
What are your thoughts on Tether Holdings' stellar financial performance? Share your opinions in the comments section below.
Frequently Asked Questions
What are the fees for an IRA that holds gold?
A monthly fee of $6 for an Individual Retirement Account is charged. This includes account maintenance fees and investment costs for your chosen investments.
You may have to pay additional fees if you want to diversify your portfolio. These fees vary depending on what type of IRA you choose. Some companies offer free checking, but charge monthly fees for IRAs.
Most providers also charge annual management costs. These fees vary from 0% to 11%. The average rate per year is.25%. These rates can often be waived if a broker, such as TD Ameritrade, is involved.
How Much of Your IRA Should Be Made Up Of Precious Metals
The most important thing you should know when investing in precious metals is that they are not just for wealthy people. You don't need to be rich to make an investment in precious metals. There are many ways that you can make money with gold and silver investments, even if you don't have much money.
You might also be interested in buying physical coins, such bullion rounds or bars. You could also buy shares in companies that produce precious metals. You might also want to use an IRA rollover program offered through your retirement plan provider.
You can still get benefits from precious metals regardless of what choice you make. Although they aren’t stocks, they offer the possibility for long-term gains.
And unlike traditional investments, they tend to increase in value over time. So, if you decide to sell your investment down the road, you'll likely see more profit than you would with traditional investments.
Can the government take your gold
The government cannot take your gold because you own it. You earned it through hard work. It belongs to your. However, there may be some exceptions to this rule. Your gold could be taken away if your crime was fraud against federal government. Additionally, your precious metals may be forfeited if you owe the IRS taxes. However, even if taxes are not paid, gold is still your property.
What is the Performance of Gold as an Investment?
Supply and demand determine the gold price. It is also affected by interest rates.
Due to limited supplies, gold prices are subject to volatility. In addition, there is a risk associated with owning physical gold because you have to store it somewhere.
Should You Buy Gold?
Gold was considered a safety net for investors during times of economic turmoil in the past. Many people are now turning their backs on traditional investments like stocks and bonds, and instead look to precious metals like Gold.
Gold prices have been on an upward trend over recent years, but they remain relatively low compared to other commodities such as oil and silver.
This could be changing, according to some experts. According to them, gold prices could soar if there is another financial crisis.
They also point out that gold is becoming popular because of its perceived value and potential return.
These are some things you should consider when considering gold investing.
- The first thing to do is assess whether you actually need the money you're putting aside for retirement. It is possible to save enough money to retire without investing in gold. Gold does offer an extra layer of protection for those who reach retirement age.
- Second, ensure you fully understand the risks involved in buying gold. Each offer varying degrees of security and flexibility.
- Last but not least, gold doesn't provide the same level security as a savings account. You may lose your gold coins and never be able to recover them.
Do your research before you buy gold. You should also ensure that you do everything you can to protect your gold.
Statistics
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (forbes.com)
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (aarp.org)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (lendedu.com)
External Links
cftc.gov
forbes.com
- Gold IRA, Add Sparkle to Your Retirement Nest egg
- Understanding China's Evergrande Crisis – Forbes Advisor
bbb.org
wsj.com
- Saddam Hussein's InvasionHelped Uncage a Bear In 90 – WSJ
- Do you want to keep your IRA gold at home? It's not legal – WSJ
How To
Online buying gold and silver is the best way to purchase it.
First, understand the basics of gold. Precious metals like gold are similar to platinum. It's very rare, and it is often used as money for its durability and resistance. It's difficult to use, so most people prefer purchasing jewelry made from it rather than actual bars.
There are two types currently available: legal tender and bullion. Legal tender coins can be used for circulation within a country. These coins usually come in denominations such $1, $5 and $10.
Bullion coins can only be used as investment currency. They increase in value due to inflation.
They aren't circulated in any currency exchange systems. One example is that if someone buys $100 worth gold, they get 100 grams with a $100 value. Each dollar spent by the buyer is worth 1 gram.
You should also know where to buy your gold. There are many options for buying gold directly from dealers. First, you can visit your local coin store. Another option is to go through a reputable site like eBay. Finally, you can look into purchasing gold through private sellers online.
Private sellers are individuals that offer gold at wholesale or retail prices. Private sellers charge a 10% to 15% commission per transaction. You would receive less money from a private buyer than you would from a coin store or eBay. This option is often a great choice for investing gold as it allows you more control over its price.
You can also invest in gold physical. While physical gold is easier than paper certificates to store, you still need to make sure it is safe. To ensure that your physical gold remains safe, you need to secure it in an impenetrable container such as a vault or safety deposit box.
To purchase gold by yourself, you can visit a bank and a pawnshop. A bank can offer you a loan for the amount that you need to buy gold. The pawnshop is a small business that allows customers to borrow money to buy items. Banks usually charge higher interest rates that pawn shops.
Another way to purchase gold is to ask another person to do it. Selling gold can also be done easily. A company such as GoldMoney.com can help you set up a simple bank account and get paid immediately.
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By: Terence Zimwara
Title: Tether Holdings Reports Record-Breaking Net Profit in Q4 2023
Sourced From: news.bitcoin.com/tethers-record-breaking-q4-profit-partly-attributed-to-gold-and-btc-price-appreciation/
Published Date: Thu, 01 Feb 2024 14:30:31 +0000
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