The Absurdity of Tether’s Quarterly Profits: A Closer Look
Tether, the issuer of the popular stablecoin USDT, recently released its quarterly attestation report, revealing astonishing profits. Despite the company’s controversial history, there is no reason to doubt this figure. Here are the key points:
- Tether holds a significant amount of U.S. Treasuries, making it the 24th largest foreign holder of treasury securities in the world.
- The company’s assets exceed $86 billion, surpassing USDT’s market capitalization.
- Tether claims operational profits of over $1 billion, a 30% increase quarter over quarter.
- The profitability can be attributed to the substantial amount of Treasuries held by Tether, benefiting from rising interest rates.
- There is speculation about how Tether will reinvest its newfound profitability, including investing in bitcoin and related ventures.
While Tether’s profitability may make sense in the context of its Treasuries holdings, concerns arise regarding its dwindling cash balance. It is crucial for Tether to maintain sufficient liquidity, especially in the event of USDT redemptions.
Ultimately, it is important to note that attestations, although reassuring, are not audits. Tether’s regulatory challenges and legal costs continue to cast a shadow of doubt over the company’s operations. Only a proper audit can provide complete transparency.
Hot Take:
Tether’s extraordinary profits raise eyebrows within the crypto community. While the company’s holdings and cash flow justify its success, the lack of audited financial statements leaves room for skepticism. As the speculation surrounding Tether persists, it remains to be seen how the company will navigate its regulatory hurdles and address concerns about transparency.
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