Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnWeb3SquareMore
Trade
Spot
Buy and sell crypto with ease
Margin
Amplify your capital and maximize fund efficiency
Onchain
Going Onchain, without going Onchain!
Convert
Zero fees, no slippage
Explore
Launchhub
Gain the edge early and start winning
Copy
Copy elite trader with one click
Bots
Simple, fast, and reliable AI trading bot
Trade
USDT-M Futures
Futures settled in USDT
USDC-M Futures
Futures settled in USDC
Coin-M Futures
Futures settled in cryptocurrencies
Explore
Futures guide
A beginner-to-advanced journey in futures trading
Futures promotions
Generous rewards await
Overview
A variety of products to grow your assets
Simple Earn
Deposit and withdraw anytime to earn flexible returns with zero risk
On-chain Earn
Earn profits daily without risking principal
Structured Earn
Robust financial innovation to navigate market swings
VIP and Wealth Management
Premium services for smart wealth management
Loans
Flexible borrowing with high fund security
Tether reports profit of $2.9 billion in Q4 attestation, with $5.4 billion in excess reserves

Tether reports profit of $2.9 billion in Q4 attestation, with $5.4 billion in excess reserves

The BlockThe Block2024/01/31 17:13
By:The Block

Quick Take Stablecoin issuer Tether reported a record net profit of $2.9 billion in its Q4 2023 attestation report. Tether also set an all-time high increase in excess reserves backing its tokens in circulation during the quarter, now totaling $5.4 billion.

Tether reports profit of $2.9 billion in Q4 attestation, with $5.4 billion in excess reserves image 0

Stablecoin issuer Tether USDT +0.07% reached a record $2.9 billion net profit in Q4 2023 and set an all-time high increase in excess reserves backing its tokens in circulation, according to its latest attestation report conducted by global auditing firm BDO.

Net operating profit was around $1 billion, primarily resulting from holdings of U.S. Treasuries, with the rest of the gains largely related to the appreciation in the value of Tether's bitcoin and gold reserves during the quarter.

The profit increased Tether's excess reserves by $2.2 billion to a total of $5.4 billion. The remainder was used to fund project investments, including mining, AI infrastructure and P2P communications, which it does not consider part of its reserves, the firm said.

BDO confirmed Tether's $4.8 billion in outstanding unsecured loans at year-end were fully covered by the excess reserves. Tether said it was proud to have removed the risk of secured loans from its token reserves.

"While such secured loans are widely overcollateralized, Tether accumulated enough excess reserves to cover the entirety of the exposure," the firm stated. "This is in response to the community's past expressed concerns about this part of the portfolio."

Tether's primary business is running the USDT stablecoin, which helped it generate a net profit of $6.2 billion for the year. 

Tether buys more bitcoin

Tether also acquired an additional 8,888 bitcoins in Q4, increasing its total holdings to about 66,465 BTC +0.01% — currently worth around $2.8 billion — The Block reported earlier this month.

As of Dec. 31, the firm's consolidated reserves amounted to at least $97 billion, including $80.3 billion worth of U.S Treasuries and $3.5 billion of gold. Tether's consolidated liabilities relating to digital tokens issued stand at $91.6 billion, 90% backed by cash or cash equivalents.

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


0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!