Tether Reports Record Net Profit of $2.9 Billion in Q4 2023

Tether, a leading stablecoin issuer, has achieved remarkable financial milestones in its Q4 2023 attestation report, disclosing a record net profit of $2.9 billion. Conducted by global auditing firm BDO, the report also underscores an unprecedented increase in excess reserves, soaring to $5.4 billion.

The substantial net operating profit of approximately $1 billion in the latest quarter can largely be attributed to holdings in U.S. Treasuries, with additional gains stemming from the appreciation of Tether’s bitcoin and gold reserves during the same period.

Tether has achieved a remarkable net profit of $6.2 billion for the entire year. Additionally, the company has expanded its cryptocurrency holdings by acquiring an additional 8,888 bitcoins in Q4, totaling approximately 66,465 BTC, currently valued at around $2.8 billion

The profit surge has boosted Tether’s excess reserves by $2.2 billion, now totaling $5.4 billion. Notably, these reserves are allocated for project investments, spanning initiatives in mining, AI infrastructure, and P2P communications, separate from Tether’s considered reserves.

BDO’s attestation has confirmed that Tether’s outstanding unsecured loans of $4.8 billion at year-end were fully covered by the excess reserves. Tether, in response to community concerns, has emphasized the removal of risk associated with secured loans from its token reserves, despite their overcollateralization.

As of December 31, Tether’s consolidated reserves have exceeded $97 billion, including $80.3 billion in U.S. Treasuries and $3.5 billion in gold. The consolidated liabilities related to digital tokens issued stood at $91.6 billion, with 90% backed by cash or cash equivalents.

Such successful financial results are promising for the crypto industry. It’s worth remembering that Tether USDT processed $18.2 trillion worth of transactions in 2022, surpassing even VISA and Mastercard.