TL;DR
- Record Profits: Tether achieves $2.85B in profits in Q4 2023, totaling $6.2B annually.
- 90% Coverage with Cash: The cryptocurrency backs 90% of its tokens with cash, indicating financial stability.
- Elimination of Loan Impact: Surpluses of $5.4B exceed remaining loans, fulfilling the promise to eliminate their impact.
In a recent statement, Tether Holdings Limited has revealed its financial performance for the fourth quarter of 2023, cementing its position as one of the leading asset-backed cryptocurrencies.
Independent auditing by BDO, a globally recognized auditing firm, supports the accuracy of Tether’s Consolidated Reserve Report (CRR).
During the fourth quarter, Tether achieved a record net profit of $2.85 billion, of which approximately $1 billion came from net operating profits, primarily from interest on U.S. Treasury Bonds.
The remainder was generated primarily through the appreciation of gold and Bitcoin reserves.
For the full year 2023, the company achieved an impressive total profit of $6.2 billion, highlighting the robustness of its business model.
A clear sign of financial stability is the fact that now backs 90% of all its issued tokens with cash and cash equivalents, marking the highest proportion in recent years.
Total exposure to US Treasuries, considering both direct and indirect exposure, stands at $80.3 billion.
A significant milestone is the accumulation of equity surpluses, which reached $5.4 billion at the end of 2023.
These surpluses, equivalent to retained earnings, exceed the amount of remaining collateralized loans ($5.4 billion vs. $4.8 billion), thus fulfilling Tether’s promise to eliminate the impact of collateralized loans on token reserves.
Paolo Ardoino, CEO of Tether, highlighted the company’s dedication to liquidity and stability
Tether Q4/2023 attestation is out.
My summary:
– profit for the quarter: $2.85B, of which ~$1B in net operational profit (mainly US t-bill interests), ~$1.85B from gold and #bitcoin holdings.
– total profit for 2023: $6.2B.
– cash & cash equivalents cover now 90% of all… https://t.co/AXjDw33QTc
— Paolo Ardoino 🍐 (@paoloardoino) January 31, 2024
Tether also emphasizes its commitment to transparency by revealing that investment of $642.5 million in strategic projects, such as artificial intelligence infrastructure, Bitcoin mining and peer-to-peer telecommunications, is kept out of the consolidated reserves report under a new portfolio category investments.
Additionally, he expressed his enthusiasm for Tether’s expansion beyond being known only for the USDt token, becoming an investor and infrastructure builder in strategic sectors.
With these strong numbers and a focus on sustainable projects, Tether is projecting an exciting 2024 with new initiatives and products on the horizon.
The cryptographic community awaits with interest how this leading cryptocurrency will evolve in the near future.
