In the midst of industry speculation and unfounded rumors surrounding potential legal challenges, Tether Holdings Limited remains unwavering, emerging stronger than ever as it releases its Q4 attestation for 2023, conducted by the reputable independent auditing firm BDO. The results reveal a groundbreaking net profit of $2.85 billion, marking a new pinnacle in Tether’s financial success. This attestation serves as a robust response to the uncertainties surrounding Tether, reaffirming the accuracy of Tether’s Consolidated Reserves Report (CRR) and offering a detailed breakdown of the assets held by the Group as of December 31, 2023.
Surge in Financial Milestones and Excess Reserves
In the fourth quarter, Tether experienced an all-time high net profit of $2.85 billion, with approximately $1 billion stemming from net operating profits, primarily from US Treasuries. The remaining profit was attributed to the appreciation of Gold and Bitcoin reserves. Notably, excess reserves witnessed an unprecedented surge, reaching $5.4 billion, showcasing Tether’s robust financial position.
The $640 million strategically invested in projects like mining, AI infrastructure, and P2P telecommunications remains segregated in a new VC umbrella, ensuring no impact on token reserves. Tether’s outstanding secured loans, collateralized by highly liquid assets, are fully covered by undistributed accumulated profits (excess reserves), amounting to $4.8 billion.
Mitigating Secured Loan Risks and Pioneering Transparency
Tether proudly declares the successful removal of secured loan risks from token reserves, addressing community concerns. Despite loans being overcollateralized, Tether strategically accumulated excess reserves, covering the entire exposure. This move reinforces Tether’s commitment to risk mitigation and transparency.
The Group’s 2023 net profit stands at an impressive $6.2 billion, with $4 billion generated from net operating profits in US Treasuries, Reverse Repo, and Money market funds. Tether continues to thrive across various asset classes, achieving record highs in direct and indirect ownership of US Treasuries.
Diverse Asset Classes and Sustainable Investments
Throughout 2023, Tether’s positive contributions extended across asset classes, including Gold, Bitcoin, and other investments. The Group set new records in direct and indirect ownership of US Treasuries, boasting an $80.3 billion exposure. Upholding its commitment to transparency, Tether issued tokens backed by Cash and Cash Equivalent at an impressive 90%, emphasizing liquidity within the stablecoin ecosystem.
The Consolidated Reserves Report (CRR) underscores Tether’s robust financial position, with consolidated assets surpassing consolidated liabilities. As of December 31, 2023, the Group’s total assets amount to at least US$ 97,020,394,556, surpassing total liabilities, which include $91,572,956,801 related to digital tokens issued.
Commitment to Sustainability and Vision for 2024
CEO Paolo Ardoino encapsulates the company’s statement on his account on X, expressing anticipation for a fruitful 2024 with new projects and products on the horizon. Highlighting Tether’s evolution into an investor and infrastructure builder in strategic sectors, Ardoino emphasized the commitment to liquidity and stability, evidenced by the highest percentage of reserves in Cash and Cash Equivalents.