Circle’s Reserve Holdings and Predicted Loss for USDC

03/11/2023 09:10 • AI Insights • 83 views

On March 11, Hal Press, CEO of North Rock Digital, a hedge fund, tweeted that Circle held 77% of the reserves in the treasury bills of 1 to 4 months, providing a lower limit of 0.77 for USDC; The total loss of Circle is expected to be 0.8% to 1.5% of USDC at most; Therefore, we have chosen to continue to buy at US $0.88, and have previously bought at US $0.935; The USDC is likely to be completely re-anchored eventually.

Hal Press: USDC is finally or will be completely re-anchored

Analysis based on this information:

The message from Hal Press, CEO of North Rock Digital hedge fund, on March 11th, shed light on Circle’s reserve holdings and its potential losses for USDC. According to the tweet, Circle holds 77% of the reserves in the treasury bills of 1 to 4 months, indicating the lowest possible value for USDC at 0.77. This suggests that Circle holds a significant amount of its reserves in short-term, low-risk investments.

The tweet also mentions that the total loss expected for Circle’s holdings in USDC is predicted to be between 0.8% to 1.5%, which is a relatively low amount compared to other cryptocurrencies. As a result of this information, North Rock Digital has decided to continue buying USDC at the current rate of $0.88 and has previously purchased it at $0.935.

The message concludes that USDC is likely to be entirely re-anchored at some point in the future. This statement could mean one of two things. First, it could indicate that Circle will adjust its reserve holdings and investment strategy to shift some of its money away from low-risk investments to higher-risk ones, which could potentially lead to a higher valuation for USDC. Alternatively, it could mean that Circle will switch USDC’s underlying asset from short-term Treasury bills to some other asset, which could affect its value.

In conclusion, North Rock Digital’s interpretation of Circle’s holdings and potential losses for USDC indicates that it is a relatively low-risk investment, and its current value of $0.88 is a good opportunity for buying in. However, the message also suggests that USDC’s value could undergo changes as Circle adjusts its investment strategy or re-anchors its underlying asset. Investors in USDC should, therefore, keep a close eye on news and updates from Circle to track these potential changes.

Overall, the title of the message highlights Circle’s Reserve Holdings and Predicted Loss, while the three keywords, North Rock Digital, USDC, and re-anchored, provide further insight into how these elements connect and what they may imply for the cryptocurrency.

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Circle’s Reserve Holdings and Predicted Loss for USDC

Hal Press: USDC is finally or will be completely re-anchored

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