von Tether Expects $700 Million In Q1 Profits
• Tether chief technology officer Paolo Ardoino says the firm will make a $700 million profit in the first quarter of 2023.
• This matches the profits of the last quarter of 2022, which saw Tether generate $700 million in profits.
• The company additionally expects to hold an excess reserve of up to $1.7 billion on December 31st, 2022.
Tether Becoming ‘Safest Asset To Hold’
According to Ardoino, USDT is becoming the „safest asset to hold in the world“ due to it not relying on fractional reserve banking like many traditional banks do. He also mentioned that he is a fan of Bitcoin, noting that it’s a hedge for them and they don’t trust the risk-taking banks.
Company Equity Growing Rapidly
The CTO believes that Tether’s company equity will grow significantly due to their reserves backing 100% of assets, with Ardoino estimating that equity could reach as high as $1.5 billion or even $1.7 billion by December 31st 2022.
Banking Crisis Impacting Crypto Firms
The banking crisis has been impacting several crypto firms since late 2020 when Silicon Valley Bank (SVB) collapsed due to issues with its fractional reserve model. Tether appears to have been able to weather this storm so far thanks to its strong reserves and growing equity figures despite having cut back on commercial paper backing last year.
Conclusion
In conclusion, Tether looks set for another successful quarter with it expecting similar profits from Q4 2021 as well as holding excess reserves estimated at up to $1.7 billion by December 31st 2022; making USDT one of the safest assets globally according cryptocurrency firm’s Chief Technology Officer Paolo Ardoino who is also a fan of Bitcoin BTC .
