Tether Rockets to Record Q4 Profits, Surpassing $2.5 Billion Milestone
Tether, a major stablecoin issuer, has disclosed impressive financial results in its recent report, showcasing substantial profits in the fourth quarter of 2023.
The standout factor contributing to this success was the significant interest earnings garnered from US treasuries.
During Q4 2023, Tether reported a noteworthy $2.85 billion in profits, marking a historic peak in the company’s financial performance.
Approximately $1 billion of this sum stemmed from net operating profits, primarily sourced from US Treasuries. The remaining portion of profits was attributed to the appreciation of reserves in Gold and Bitcoin.
In a surprising turn of events, excess reserves experienced an unprecedented surge, reaching $2.2 billion, resulting in a total reserve value of $5.4 billion. Furthermore, strategic investments totaling $640 million were made in various projects, such as mining, AI infrastructure, P2P telecommunications, and more. Notably, these investments have been consciously segregated under a new VC umbrella to prevent any potential impact on the token reserves.
Tether emphasized that its positive financial trajectory extended beyond the influx from US Treasuries, with its diverse portfolio, including Gold and Bitcoin (BTC), contributing significantly to the overall success.
The financial report for the Group in 2023 revealed a net profit of $6.2 billion. Around $4 billion of this amount was attributed to net operating profits from US Treasuries, Reverse Repo, and Money market funds, while the remaining profits were generated through the performance of various asset classes.
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Tether underscored ongoing positive contributions from all asset classes, particularly highlighting strong performances in Gold, Bitcoin, and various other investments. The Group achieved unprecedented levels of both direct and indirect ownership of US Treasuries, with exposure totaling an impressive $80.3 billion.
As of December 1st, 2023, Tether reported holding $5.4 billion in excess funds, effectively covering its outstanding loans of $4.8 billion included in USDT reserves. The disclosed report also indicated that the total assets under Tether’s management exceeded $98 billion.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
