Tether Records a Profit of $6.2 Billion in 2023

On January 31, 2024, the stablecoin issuer Tether (USDT) released its financial report for the fourth quarter of 2023 and the entire year, revealing remarkable figures. Specifically, in the last quarter of 2023, Tether reported a profit of $2.85 billion, the highest figure to date. Of this amount, $1 billion came from holding US Treasury bonds, while the remaining $1.85 billion was profit from investments in Bitcoin and gold.

This latest profit figure brought Tether’s total earnings for the entire year 2023 to $6.2 billion.

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 announced its commitment to allocate $2.2 billion of the fourth-quarter profit to bolster the surplus asset reserve to secure the USDT, increasing the fund’s value to $5.4 billion. The remaining $640 million would be utilized for investment activities and the development of business areas such as AI, cryptocurrency mining, P2P transaction infrastructure, and more.

As of December 31, 2023, Tether reported holding $97 billion in assets to collateralize the $91.5 billion USDT issued into the market. The majority of these assets consisted of US Treasury bonds, totaling $80.3 billion (both directly and indirectly), along with various other cash-equivalent assets. Additionally, the company owned $3.5 billion in gold, $2.8 billion in Bitcoin, $3.7 billion in other investments, and $4.8 billion in external lending assets.

Tether stated that 90% of the circulating USDT in the cryptocurrency market is backed by assets equivalent to cash, ensuring liquidity when needed.

CEO Paolo Ardoino remarked:

The Q4/2023 asset verification report from Tether continues to demonstrate our commitment to transparency, stability, and responsible financial management. Achieving the highest cash-backed debt ratio to date reflects our emphasis on liquidity stability. The net profit of $6.2 billion for the past year demonstrates the financial strength of Tether. Furthermore, investments in sustainable energy, Bitcoin mining, AI infrastructure, and P2P technology underscore Tether’s determination for a robust financial industry serving everyone.

The Ranking of USDT on Coinmarketcap

Currently, on Coinmarketcap, Tether’s USDT continues to maintain its dominant position, significantly surpassing other stablecoins.

The Ranking of Stablecoins on Coinmarketcap as of January 2, 2024