Bitcoin and Gold Price Appreciation Contribute to Tether's Record Profit
In the last quarter of 2023, Tether Holdings Limited achieved a remarkable milestone, registering a net profit of $2.85 billion. This figure contributed to the stablecoin issuer's overall net profit for the year, which surpassed $6.2 billion. The company's secured loans, totaling $4.8 billion, were fully backed by excess reserves amounting to $5.4 billion.
The impressive financial performance of Tether Holdings Limited can be attributed, in part, to the appreciation of both bitcoin and gold reserves. According to the company's latest consolidated reserves report (CRR), a significant portion of the $2.85 billion net profit in the fourth quarter of 2023 was generated through interest on U.S. treasuries holdings, while the remaining amount primarily resulted from the appreciation of gold and bitcoin reserves.
Overall Net Profit and Asset Classes
Tether's net profit for the full year of 2023 stood at $6.2 billion. Of this amount, approximately $4 billion was generated from net operating profits derived from U.S. Treasuries, Reverse Repo, and Money market funds. The remaining $2.2 billion was generated through other asset classes.
Excess Reserves and Secured Loans
Alongside its impressive financial results, Tether Holdings Limited saw a substantial increase in excess reserves, which rose by $2.2 billion to reach $5.4 billion. As a result, Tether's secured loans, amounting to $4.8 billion, are fully covered by these undistributed accumulated profits known as excess reserves.
CEO's Comments and Future Commitments
Paolo Ardoino, the CEO of Tether, emphasized the company's commitment to transparency, stability, and responsible financial management. He highlighted the achievement of maintaining a high percentage of reserves in Cash and Cash Equivalents, which reflects their dedication to liquidity and stability. Ardoino also mentioned Tether's investments in sustainable energy, bitcoin mining, artificial intelligence, and peer-to-peer technology as evidence of their firm commitment to an inclusive financial future.
Share your thoughts on Tether Holdings' latest financial performance in the comments section below.
Frequently Asked Questions
How do you withdraw from an IRA that holds precious metals?
If you have a precious metal IRA account such as Goldco International Inc., it may be worth considering withdrawing your funds. When you sell your metals, the value of those funds will be higher than if it was kept in the account.
Here is how to withdraw precious metal IRA funds.
First, determine whether the precious metal IRA provider allows withdrawals. Some companies will allow withdrawals, while others won't.
Second, determine whether you can take advantage of tax-deferred gains by selling your metals. This benefit is provided by almost all IRA providers. But, not all IRA providers offer this benefit.
Third, make sure to check with your precious metal IRA provider if there are any fees associated with these steps. It is possible that the withdrawal will be more expensive.
Fourth, make sure you keep track for at least three consecutive years of the precious metal IRA investments after you have sold them. In other words, wait until January 1st each year to calculate capital gains on your investment portfolio. Next, fill out Form 8949 to determine the amount you gained.
The IRS requires that you report your sale of precious metals. This step ensures that you pay taxes on all profits earned from your sales.
Before selling precious metals, it is a good idea to consult an attorney or trusted accountant. They can assist you in following the correct procedures and avoiding costly mistakes.
What are the 3 types IRAs?
There are three basic types of IRAs. Each type of IRA has its pros and cons. Each type will be covered in detail below.
Traditional Individual Retirement Accounts (IRA)
Traditional IRAs allow you to make pretax contributions to an account that allows you to defer taxes while still earning interest. When you retire, your withdrawals are not subject to tax.
Roth IRAs allow you to deposit after-tax dollars into an account. This allows earnings to grow tax-free. Withdrawals from the account are also tax-free when you withdraw funds for retirement purposes.
This is similar to a Roth IRA, except that it requires employees to make additional contributions. These additional contributions can be taxed. However, any earnings are now tax-deferred. When you leave your company, you may convert the entire amount into a Roth IRA.
What type of IRA is used for precious metals?
An Individual Retirement Account (IRA) is an investment vehicle most employers and financial institutions offer. You can contribute to an IRA account which grows tax-deferred and can be withdrawn at any time.
An IRA allows for you to save taxes while still paying taxes when you retire. This means that you can deposit more money into your retirement plan than have to pay taxes on it tomorrow.
An IRA has the advantage of allowing contributions and earnings to grow tax-free until you withdraw your funds. You can face penalties if you withdraw funds before the deadline.
After 50 you can still make contributions to your IRA. There is no penalty. If you take out of your IRA during retirement you will owe income and a 10% federal penal.
Withdrawals before age 59 1/2 will be subject to a 5% IRS penal. Between the ages of 591/2 and 70 1/2, withdrawals are subject to a 3.4% IRS penal.
Withdrawal amounts exceeding $10,000 per year are subject to a 6.2% IRS penalty.
- The maximum yearly contribution to an individual's IRAs is currently $6,000 ($7,000 for those 50 years or older), or 100% of earned income, whichever is less. (monex.com)
- To qualify as IRA allowable precious metals and be accepted by STRATA, the following minimum fineness requirements must be met: Gold must be 99.5% pure, silver must be 99.9% pure, and platinum and palladium must both be 99.95% pure. (stratatrust.com)
- Same tax rules as traditional IRA SEP IRA contributions in 2022 are limited to 25% of compensation or $66,000, whichever is less Before setting up a Silver IRA, understand the fees and IRS restrictions. (sltrib.com)
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal so that 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)
- Gold IRA: Add Some Sparkle To Your Retirement Nest Egg
- Understanding China's Evergrande Crisis – Forbes Advisor
How to transfer your IRA into a gold IRA
Are you looking to transfer your retirement savings out of a traditional IRA in favor of a gold IRA. This article will assist you in that endeavor. Here's how you can do it.
Rolling over is the process of transferring money from one type of IRA to another. Rolling over an IRA account can provide tax advantages. In addition, some people prefer investing in physical assets like precious metals.
There are two types IRAs – Traditional IRAs, and Roth IRAs. The difference is simple. Traditional IRAs allow investors the ability to deduct taxes whenever they withdraw their earnings. Roth IRAs are not. That means that if you invest $5,000 in a Traditional IRA today, then after five years, you'll only be able to take out $4,850. However, if you put the same amount into a Roth IRA you would be able keep every penny.
Here's what you should know if you're looking to convert from a traditional IRA to a gold IRA.
First, you need to decide whether to roll over your current balance into a new account or simply transfer funds from your old account to your new one. If you transfer money, income tax will apply to any earnings exceeding $10,000. However, if you roll over your IRA, those earnings won't be subject to tax until you reach age 59 1/2.
Once you have made up your mind, it is time to open a brand new account. It is likely that you will be asked to prove your identity by providing proof such as a Social Security card or passport. Once you are done, you will fill out paperwork proving ownership of your IRA. Once you've filled out the forms you'll send them to your bank. After verifying your identity, they will give you instructions about where to send wire transfers or checks.
Now comes fun. After you have received approval from the IRS, you will deposit cash to your new account. After you receive approval, you'll get a letter stating that you can now begin withdrawing funds.
That's it! You can now relax and watch your money grow. Remember that if you are unsure whether you want to convert your IRA, it is possible to close it and roll the balance over into a new IRA.
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