February 2, 2024

Tether Achieves Record $2.9 Billion Net Profit in Q4 2023, Bolstered by $5.4 Billion Excess Reserves

Stablecoin issuer Tether reported a record net profit of $2.9 billion in its Q4 2023 attestation report.

Tether, the stablecoin issuer, announced an unprecedented net profit of $2.9 billion for the fourth quarter of 2023. The company's latest attestation report, conducted by global auditing firm BDO, revealed not only this stellar financial performance but also a remarkable surge in excess reserves supporting its circulating tokens.

Tether's net operating profit, amounting to approximately $1 billion, was primarily attributed to its holdings in U.S. Treasuries. Additional gains were derived from the appreciation of Tether's bitcoin and gold reserves during the quarter, showcasing the company's diversified portfolio.

This surge in profits significantly augmented Tether's excess reserves, boosting them by $2.2 billion to an impressive total of $5.4 billion. While a portion of the gains fueled various project investments, such as mining, AI infrastructure, and P2P communications, Tether clarified that these are distinct from its reserves.

BDO verified that Tether's outstanding unsecured loans of $4.8 billion at year-end were fully covered by the excess reserves. Tether proudly emphasized its commitment to mitigating risks associated with secured loans, ensuring that its reserves exceeded the exposure. The move was a response to concerns previously expressed by the community regarding this aspect of the portfolio.

Tether's core business revolves around the USDT stablecoin, contributing significantly to its impressive net profit of $6.2 billion for the entire year. Additionally, the company expanded its holdings by acquiring 8,888 bitcoins in Q4, bringing its total bitcoin holdings to approximately 66,450 BTC, valued at around $2.8 billion.

As of December 31, Tether's consolidated reserves stood at a staggering $97 billion, comprising $80.3 billion in U.S. Treasuries and $3.5 billion in gold. Remarkably, Tether's consolidated liabilities related to digital tokens issued amounted to $91.6 billion, with 90% backed by cash or cash equivalents.

Paolo Ardoino, Tether's CEO, emphasized the significance of the Q4 attestation, stating:

"Tether’s Q4 attestation underscores our commitment to transparency, stability, and responsible financial management."

The report reflects Tether's dedication to maintaining a high standard of transparency and financial accountability.

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