Tether Sees Record Profit and Approaches $100 Billion in Assets
In January, Tether released its Q4 attestation report, revealing that the company made a $6.2 billion profit in 2023. This financial surge brings Tether’s assets close to the $100 billion mark.
Tether’s Financial Milestones
The majority of Tether’s profits, around $4 billion, were generated from US Treasuries, Reverse Repo, and Money market funds. These assets make up a significant portion of Tether’s reserves.
As of December 31, Tether held total assets worth $97 billion, with liabilities at $91.6 billion.
Tether stated that the fourth quarter saw a record-breaking net profit of $2.85 billion. Around $1 billion came from net operating profits, primarily from US Treasuries, while the rest came from the appreciation of Gold and Bitcoin reserves.
Last year, Tether used most of its profits to increase its excess reserve stash as insurance against insolvency. These excess reserves now amount to $5.4 billion and fully cover Tether’s outstanding secured loans worth $4.8 billion.
Tether’s Asset Breakdown
The bulk of Tether’s portfolio consists of $82.06 billion in “cash and cash equivalents,” including $80.3 billion in US Treasuries.
In addition to these holdings, Tether has invested in gold ($3.6 billion), Bitcoin ($2.1 billion), and other assets ($5.6 billion).
Tether has also allocated $1.5 billion to VC investments in areas like AI infrastructure, Bitcoin mining, and P2P telecommunications technology.
Cantor Fitzgerald CEO Howard Lutnick confirmed that his firm holds Tether’s Treasury bills, reassuring concerns about the stability of Tether’s stablecoins.
Hot Take: Tether’s Financial Achievements
Tether’s financial success in 2023 demonstrates significant growth and strategic asset management. By prioritizing diversification and maintaining a solid reserve, Tether has solidified its position in the stablecoin sector. Moving forward, Tether’s commitment to financial stability and asset-backed security will be crucial for its operations and user confidence.
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