Tether reports Q4 2023 profits of $2.8b

crypto news T letter green coins and trading chart background white and green color v5.2

Tether reported an all-time-high increase in USDT’s excess reserves and recorded net profits in the last quarter of 2023. 

According to a Q4 attestation, stablecoin operator Tether (USDT) made $2.8 billion in net profits from price appreciations tied to its Bitcoin (BTC) and gold reserves. U.S. Treasury bills secured the digital payments firm $1 billion in net operation profits, lifting excess reserves to $5.4 billion. 

This marked a $2.2 billion increase from the previous quarter. Some of this profit was put to work funding BTC mining, AI development, P2P communications, and other project investment endeavors. 

BDO, Tether’s chosen audit provider, attested the firm’s excess reserves fully covered its $4.8 billion in outstanding unsecured loans, which partly back its USDT stablecoin. The firm generated a net profit of $6.2 billion for the whole of last year.

Tether’s Q4 attestation underscores our commitment to transparency, stability, and responsible financial management. Achieving the highest percentage of reserves in Cash and Cash Equivalents reflects our dedication to liquidity and stability.

Paolo Ardoino, Tether CEO

Tether adds to Bitcoin holdings

In addition to making record profits, the company bought more Bitcoin in the final quarter of 2023. The audit pointed to 8,888 BTC worth an estimated $387 million acquired by USDT’s issuer. This brings Tether’s total BTC portfolio to 66,465 coins valued at almost $3 billion as private entities accumulate crypto’s largest token amid growing adoption. 

The digital asset giant started buying BTC sometime in the first half of 2023, allocating up to 15% of its net realized operating profit to the cryptocurrency. Its Bitcoin holdings have swelled in value since then as markets rallied on the back of institutional interest from Wall Street titans like BlackRock and Fidelity. 

Source link

About The Author

Scroll to Top