Very simply? If the conspiracy theories about their scamminess were wrong and they did what they said which was hold dollars without duration exposure (mostly cash and tbills). Then once rates got hiked they were basically the only bank equivalent in the world with captive depositors that couldn’t just take their money to competitors and they were able to keep all the interest (4-5 bn per year currently). Which incidentally they’re now using in part to load up (substantially) on btc with house money.
I don’t know what the truth is obviously for sure but this story is extremely possible and plausible. It doesn’t mean they were particularly good traders. It means if true basically they were disciplined and didn’t trade at all and are now benefitting from massive upside on their set up resulting from monetary policy and regulatory conditions driving their popularity.
I don’t know what the truth is obviously for sure but this story is extremely possible and plausible. It doesn’t mean they were particularly good traders. It means if true basically they were disciplined and didn’t trade at all and are now benefitting from massive upside on their set up resulting from monetary policy and regulatory conditions driving their popularity.