Stablecoin issuer Tether’s USDT is closing in on a $100 billion market cap after the firm saw record-breaking profits last quarter.
According to Tether’s last earnings report, the company made $2.85 billion in profits during the fourth quarter of 2023, the highest the firm has ever seen, which was largely driven by interest payments from US Treasuries.
Says the report,
“In terms of financial performance, the fourth quarter witnessed a record-breaking net profit of $2.85 billion, of which ~$1 billion in net operating profits (were primarily interests from US Treasuries) with the remaining primarily from the appreciation of gold and Bitcoin reserves.”
According to analytics firm IntoTheBlock, Tether’s increasing dominance as of late partially stems from its competitors facing significant hurdles, including USDC-issuer Circle being affected by the regional bank crisis, and Binance’s BUSD suffering from regulatory scrutiny from the US government.
“This situation has positioned Tether to capitalize on these developments, thereby enhancing their presence and facilitating their expansion.”
USDC is currently less than one-third of USDT’s market cap while BUSD is in the process of being wound down.
According to Tether’s last earnings report, as of December 1st, 2023, the company has $5.4 billion in excess funds – which covers its $4.8 billion in outstanding loans included in USDT reserves – and over $98 billion in assets under its management.
At time of writing, USDT’s market cap stands at $96.17 billion.
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The post Tether (USDT) Hits $96,000,000,000 in Market Cap Following Record-Breaking Net Profit in Q4 2023 appeared first on The Daily Hodl.