Tether’s Q4 Performance: Record-Breaking $2.9 Billion Profit

In the final quarter of 2023, Tether, a stablecoin issuer, announced a record-breaking net profit of $2.9 billion, according to BDO’s recent audit report.

This profit surge was driven primarily by net operating earnings from U.S. Treasuries, which accounted for approximately $1 billion, with additional gains coming from the appreciation of gold and Bitcoin reserves. The recent profit added to Tether’s surplus reserves, taking the total to a whopping $5.4 billion.

As of December 31, Tether Holdings Limited’s consolidated total assets now amount to at least $97 billion, consisting mainly of U.S. Treasuries ($80.3 billion) and gold reserves ($3.5 billion).

The consolidated debts arising from digital token issuance amount to $91.6 billion at present; this sum is supported by cash or cash equivalents to the extent of 90%.

Tether’s Q4 Performance and Investments

Tether has been directing a part of its earnings into various ventures like mining, AI infrastructure development, and P2P communication. These investments, however, are not included in Tether’s reserve calculations.

BDO’s audit confirmed that Tether’s $4.8 billion unsecured loans at the year’s end were completely backed by its surplus reserves. Tether is also focusing on minimizing the risks associated with secured loans in relation to its token reserves.

The latest Q4 disclosure showed that Tether had bought 8,888 more Bitcoins, bringing the total stockpile to approximately 66,465 BTC. With this impressive performance, Tether continues to dominate the stablecoin market, with USDC as a distant second.

Paolo Ardoino, Tether’s CEO, reiterated the company’s focus on maintaining transparency, financial stability, and responsible management practices.

The firm’s consolidated reserves have exceeded its consolidated liabilities, ensuring strong financial footing and investor confidence in the cryptocurrency ecosystem. Tether’s dedication to transparency and financial stability has been further demonstrated through the detailed breakdown of assets and liabilities in the attestation report.

As Tether continues its growth trajectory, it remains a vital player in the cryptocurrency market, providing stability and liquidity for traders and investors alike.

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