Tether recorded a profit of $2.85 billion in the fourth quarter of 2023 according to a recent report. Tether Holdings Limited, the issuer of the stablecoin USDT released its Q4 2023 attestation report, revealing robust financial performance and a significant increase in excess reserves.
The report also showed a diversified portfolio, encompassing investments in multiple asset classes such as Gold and Bitcoin which roped in about $1 billion from net operational earnings. These were mainly interests from US Treasuries, and the rest from the appreciation of gold and bitcoin reserves.
An unprecedented $2.2 billion boosted the excess reserves to $5.4 billion, with $640 million going toward various strategic initiatives (including mining, AI infrastructure, P2P telephony, and others).
They achieved a total net profit of $6.2 billion in 2023, of which $4 billion was attributable to the net operating profits generated by US Treasuries, Reverse Repo, and Money market funds. The remaining $6.2 billion was generated by the performance of other asset classes.
Consolidated total assets of the Group are a minimum of $97,020,394,556, and consolidated total liabilities are $91,597,732,663, of which $91,572,956,801 are attributable to digital tokens issued.
It is important to note that, they do not count investments in sustainable energy, Bitcoin mining, data, AI infrastructure, peer-to-peer telecommunications technology, or other long-term proprietary investments as reserves supporting the issued token. Investments in these sectors totaled $642,551,135 in the fourth quarter of 2023 bringing the total investment in 2023 to $1,452,20,608
Marked by consistent profitability and a growing reserve base, the substantial increase in excess reserves enhances confidence in USDT’s stability, a crucial factor for investors in the cryptocurrency market.
Tether’s commitment to transparency is evident in its detailed breakdown of its assets and liabilities, fostering stakeholder trust and understanding.
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