Tether Reports $2.65 Billion Paper Loss on Gold Holdings Amid Price Drop
Tether, a major player in the cryptocurrency space known for its stablecoins USDT and XAUT, has reported a significant paper loss of $2.65 billion due to a sharp decline in gold prices over just one month. The company's gold holdings, valued at approximately $22.06 billion on August 24 when gold was trading around $4,700 per ounce, dropped to about $19.41 billion by September 28 as the price of bullion fell to a seven-week low. The decline in gold prices has been attributed to rising oil prices fueling inflation fears and concerns over potential interest rate hikes from the Federal Reserve. A stronger U.S. dollar and higher Treasury yields have also contributed to downward pressure on bullion values. As of now, gold is trading at $4,135 per ounce. It's important to note that Tether has not sold its holdings; thus, this loss remains unrealized.
