Tether has just shared some impressive financial news, reporting a record-breaking surge in the excess reserves of USDT and significant earnings in the final quarter of 2023.
According to the Q4 financial review, Tether (USDT) accumulated a staggering $2.8 billion in net gains, primarily due to the increased value of its Bitcoin (BTC) and gold assets. The company also saw a substantial boost of $1 billion in net operational earnings from U.S. Treasury bills, pushing its excess reserves to an impressive $5.4 billion. This marks a noteworthy growth of $2.2 billion from the previous quarter. Tether decided to reinvest some of these profits in diverse ventures, including Bitcoin mining, artificial intelligence research, peer-to-peer communication technologies, and other innovative projects.
BDO, the auditing firm chosen by Tether, confirmed that the company's excess reserves comfortably cover its $4.8 billion in outstanding unsecured loans, which partially support the USDT stablecoin. Over the past year, Tether has reported a net income of $6.2 billion.
This latest Q4 attestation from Tether underscores the company's commitment to transparency, financial stability, and careful fiscal management. The achievement of the highest proportion of reserves in Cash and Cash Equivalents reflects their dedication to liquidity and financial stability.
Paolo Ardoino, Tether's CEO, highlights these accomplishments.
Apart from the remarkable profits, Tether has also grown its Bitcoin holdings in the final quarter of 2023. The audit report reveals the acquisition of 8,888 BTC, valued at approximately $387 million, by the issuer of USDT. Tether's total Bitcoin holdings now amount to 66,465 coins, with an estimated value of nearly $3 billion. This move comes as private firms increasingly invest in the leading cryptocurrency amid its growing acceptance.
Tether initiated its Bitcoin acquisitions in early 2023, allocating up to 15% of its net realized operating profits to the cryptocurrency. Since then, the value of its Bitcoin investments has surged, driven by escalating market enthusiasm and substantial institutional interest from major Wall Street players like BlackRock and Fidelity.
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