Stablecoin Issuer Tether Reports Record $2.9 Billion Net Profit in Q4 2023
Tether, the issuer of the USDT stablecoin, has announced that it achieved a record net profit of $2.9 billion in the fourth quarter of 2023. This milestone was accompanied by a significant increase in excess reserves to support its circulating tokens. The auditing firm BDO conducted an attestation to confirm these figures.
Net Operating Profit and Excess Reserves
Tether’s net operating profit for the quarter reached approximately $1 billion, primarily driven by holdings of U.S. Treasuries. The remaining gains were attributed to the appreciation of Tether’s bitcoin and gold reserves. This profit boosted Tether’s excess reserves by $2.2 billion, bringing the total to $5.4 billion.
Project Investments and Secured Loans
Tether allocated a portion of its profits to fund various project investments, including mining, AI infrastructure, and P2P communications. However, these investments are not considered part of Tether’s reserves.
BDO confirmed that Tether’s outstanding unsecured loans of $4.8 billion at the end of the year were fully covered by its excess reserves. Tether emphasized its commitment to removing the risk associated with secured loans from its token reserves.
Tether’s Bitcoin Holdings
In addition to its financial success, Tether acquired an additional 8,888 bitcoins in Q4, bringing its total holdings to approximately 66,465 BTC. These bitcoins are currently valued at around $2.8 billion.
Consolidated Reserves and Liabilities
Tether’s consolidated reserves as of December 31 amounted to at least $97 billion, including $80.3 billion in U.S. Treasuries and $3.5 billion in gold. The company’s consolidated liabilities related to digital tokens issued stood at $91.6 billion, with 90% backed by cash or cash equivalents.
Tether’s Commitment to Transparency
Tether CEO Paolo Ardoino expressed the company’s commitment to transparency, stability, and responsible financial management. The Q4 attestation serves as evidence of this dedication.
Hot Take: Tether Sets New Records with Impressive Q4 Performance
Tether, the stablecoin issuer behind USDT, has achieved remarkable success in the fourth quarter of 2023. With a record net profit of $2.9 billion and increased excess reserves, Tether has solidified its position in the cryptocurrency market. The company’s strategic investments and acquisition of additional bitcoins further contribute to its growth. Tether’s commitment to transparency and responsible financial management is evident through its attestation and removal of secured loan risks. As Tether continues to thrive, it remains a prominent player in the stablecoin industry.
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