Tether Reports Record $2.85B Net Profit for Q4, BDO Audit Approves Claims
In Brief
Tether released its financial performance for the fourth quarter (Q4) of 2023, achieving a record-breaking profit of $2.85 billion.
Tether Holdings Limited (BVI) today announced its financial performance for the fourth quarter of 2023, alongside an assurance opinion provided by BDO, a renowned independent auditing firm. The opinion validates the accuracy of Tether’s Consolidated Reserves Report (CRR), offering stakeholders assurance regarding the firm’s financial transparency.
Financially, the fourth quarter of 2023 proved good for Tether, with a record-breaking net profit of $2.85 billion. Approximately $1 billion of this profit stemmed from net operating profits, primarily from US Treasuries.
According to Tether, the remainder of the profits was attributed to the appreciation of Gold and Bitcoin reserves. Excess reserves soared to an all-time high of $5.4 billion, marking an increase of $2.2 billion during the quarter. Moreover, $640 million was strategically invested in various projects, such as mining, AI infrastructure, and P2P telecommunications, segregated from the consolidated reserves report.
Additionally, the firm’s management highlighted the elimination of secured loan risks from token reserves, ensuring that these loans, while overcollateralized, are fully covered by accumulated profits. The company reported a net profit of $6.2 billion for the entirety of 2023, with approximately $4 billion derived from net operating profits related to US Treasuries, Reverse Repo, and Money market funds.
Tether’s Strong Financial Position and Commitment to Stability
The performance across asset classes was robust, with positive contributions from Gold, Bitcoin and other investments. Tether achieved record highs in direct and indirect ownership of the US Treasury, amounting to $80.3 billion in exposure, including overnight-reverse repos secured by theUS Treasury and investments in money market funds.
Tether reaffirmed its commitment to maintaining liquidity within the stablecoin ecosystem by issuing tokens backed by Cash and Cash Equivalent at an impressive 90%. This move underscores the company’s dedication to ensuring stability and transparency in its operations.
The Consolidated Reserves Report (CRR) further solidifies Tether’s financial position, with consolidated assets surpassing consolidated liabilities. As of December 31, 2023, the group’s total assets amounted to at least US$ 97,020,394,556, while total liabilities stood at US$ 91,597,732,663, primarily attributed to digital tokens issued. It’s worth noting that the company’s assets exceed its liabilities, reinforcing its financial stability.
Moreover, Tether clarified that investments made into sustainable energy, Bitcoin mining, data, AI infrastructure, P2P telecommunications, and other long-term proprietary investments are not considered part of the reserves backing the issued token. This distinction highlights the company’s strategic allocation of resources while ensuring the integrity of its token reserves.
Tether’s financial performance for the fourth quarter of 2023 reflects strong profits, prudent risk management, and strategic investments.
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Kumar is an experienced Tech Journalist with a specialization in the dynamic intersections of AI/ML, marketing technology, and emerging fields such as crypto, blockchain, and NFTs. With over 3 years of experience in the industry, Kumar has established a proven track record in crafting compelling narratives, conducting insightful interviews, and delivering comprehensive insights. Kumar's expertise lies in producing high-impact content, including articles, reports, and research publications for prominent industry platforms. With a unique skill set that combines technical knowledge and storytelling, Kumar excels at communicating complex technological concepts to diverse audiences in a clear and engaging manner.
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Kumar is an experienced Tech Journalist with a specialization in the dynamic intersections of AI/ML, marketing technology, and emerging fields such as crypto, blockchain, and NFTs. With over 3 years of experience in the industry, Kumar has established a proven track record in crafting compelling narratives, conducting insightful interviews, and delivering comprehensive insights. Kumar's expertise lies in producing high-impact content, including articles, reports, and research publications for prominent industry platforms. With a unique skill set that combines technical knowledge and storytelling, Kumar excels at communicating complex technological concepts to diverse audiences in a clear and engaging manner.
