Tether Reports All-Time High Excess Reserves and Net Profits
Tether, the stablecoin operator, has reported a significant increase in its excess reserves and recorded net profits in the last quarter of 2023. According to a Q4 attestation, Tether made $2.8 billion in net profits from price appreciations tied to its Bitcoin and gold reserves. The company’s excess reserves reached $5.4 billion, a $2.2 billion increase from the previous quarter. Some of this profit was used to fund BTC mining, AI development, P2P communications, and other investment endeavors.
BDO, Tether’s chosen audit provider, confirmed that the firm’s excess reserves fully covered its outstanding unsecured loans of $4.8 billion, which partly back its USDT stablecoin. In total, Tether generated a net profit of $6.2 billion for the whole of last year.
“Tether’s Q4 attestation underscores our commitment to transparency, stability, and responsible financial management. Achieving the highest percentage of reserves in Cash and Cash Equivalents reflects our dedication to liquidity and stability.”
Paolo Ardoino, Tether CEO
Tether Increases Bitcoin Holdings
In addition to its record profits, Tether also bought more Bitcoin in the final quarter of 2023. The audit revealed that the company acquired 8,888 BTC worth an estimated $387 million, bringing its total BTC portfolio to 66,465 coins valued at almost $3 billion. This purchase aligns with private entities accumulating Bitcoin due to its growing adoption and institutional interest from Wall Street giants like BlackRock and Fidelity.
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