Tether Reports Record Profits, Fueled by US Treasuries
Stablecoin issuer Tether has released its latest attestation report, revealing that the company achieved record-breaking profits in Q4. The majority of these profits were generated from interest payments received from US treasuries. Tether’s report shows that it made $2.5 billion in profits during the fourth quarter, the highest net profit in the company’s history.
The report states that approximately $1 billion of the net operating profits came from interest payments on US treasuries, with the remaining profits derived from the appreciation of gold and Bitcoin reserves. The excess reserves reached an all-time high increase of $2.2 billion, totaling $5.4 billion. Additionally, $640 million was invested in strategic projects such as mining and AI infrastructure.
Tether also reported positive contributions from other asset classes in its portfolio, including gold and Bitcoin. The company’s net profit for 2023 amounted to $6.2 billion, with $4 billion generated from net operating profits on US treasuries, reverse repo, and money market funds.
As of December 1st, 2023, Tether holds $5.4 billion in excess funds to cover its $4.8 billion outstanding loans included in USDT reserves and manages over $98 billion in assets.
Hot Take: Tether’s Record-Breaking Profits Reflect Stablecoin Dominance
Tether’s latest attestation report highlights the stablecoin issuer’s impressive financial performance in Q4 2023. The substantial profits primarily driven by interest payments from US treasuries demonstrate Tether’s dominance within the stablecoin market.
With a record-breaking net profit of $2.5 billion and excess reserves reaching $5.4 billion, Tether’s success is further underscored by its investments in strategic projects and positive contributions from asset classes like gold and Bitcoin.
This report solidifies Tether’s position as a leading stablecoin provider, showcasing its ability to generate substantial profits and manage significant assets. As the crypto industry continues to evolve, Tether remains a key player, fueling the growth and stability of the digital asset ecosystem.
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