Tether Reports Record-Breaking Profit Surge in Q4 2023
Stablecoin issuer Tether has announced a “record-breaking” net profit surge of $2.85 billion in the fourth quarter of 2023. Of this profit, around $1 billion came from net operating gains, primarily from interests in the US Treasury. The rest was mainly generated through the appreciation of gold and Bitcoin reserves.
Excess Reserves Reach Historic High
Tether also reported a significant increase in excess reserves, which reached a historic high of $5.4 billion. Additionally, $640 million was allocated to strategic investments in projects such as mining, AI infrastructure, and P2P telecommunications.
Risks Addressed, Concerns Alleviated
Tether’s Q4 attestation, signed by BDO Italy, revealed the elimination of secured loan risks from its token reserves. This move was made in response to community concerns and ensures that Tether’s portfolio is overcollateralized.
USDT Stablecoin Drives Net Profit
Tether’s core operation revolves around managing the USDT stablecoin, which significantly contributed to the company’s net profit of $6.2 billion in 2023. The report highlights successful diversification efforts, with approximately $4 billion derived from investments in US Treasuries, Reverse Repo, and Money market funds.
Bitcoin Holdings Increase
In the fourth quarter, Tether acquired an additional 8,888 bitcoins, bringing its total holdings to approximately 66,465 bitcoins valued at around $2.8 billion.
Hot Take: Tether’s Record-Breaking Quarter Shows Commitment to Transparency and Stability
Tether’s impressive Q4 2023 performance reflects its dedication to transparency, stability, and responsible financial management. The elimination of secured loan risks and the high percentage of reserves in Cash and Cash Equivalents demonstrate Tether’s commitment to liquidity and stability. With a growing market cap above $96 billion, Tether continues to solidify its position as a leading stablecoin issuer.
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