Tether Achieves Unprecedented $2.85 Billion Net Profit in Q4, Confirmed by BDO Audit

Today, Tether Holdings Limited (BVI) shared its financial results for the fourth quarter of 2023 and presented an assurance opinion from BDO, a highly regarded independent auditor. This opinion affirms the reliability of Tether’s Consolidated Reserves Report (CRR), providing transparency for stakeholders concerned about the firm's financial status. transparency .

The financial landscape for Tether in Q4 2023 was notably prosperous, showcasing a remarkable net profit of $2.85 billion, with around $1 billion coming from operating profits largely generated through US Treasuries.

According to Tether, the remaining profit was primarily due to the rising value of their Gold and Bitcoin reserves. Their excess reserves also reached an all-time high of $5.4 billion, which was a $2.2 billion increase within the quarter. Additionally, $640 million was prudently allocated toward various ventures, including mining, AI infrastructure, and peer-to-peer telecommunications, which are categorized separately from the consolidated reserves report. profits Furthermore, the company indicated that it has eliminated secured loan risks related to its token reserves, assuring that these loans—although overcollateralized—are completely backed by accumulated profits. For the entire year of 2023, Tether tallied a net profit of $6.2 billion, with about $4 billion originating from net operating gains linked to US Treasuries, reverse repos, and money market funds.

Tether's Financial Resilience and Focus on Stability

The performance across various asset classes proved robust, buoyed by positive results from Gold and an array of other investments. Tether reported unprecedented levels of direct and indirect exposure to US Treasury securities, amounting to an impressive $80.3 billion, which includes overnight reverse repos secured by the Treasury and investments in money market funds.

Tether reaffirmed its unwavering commitment to sustaining liquidity within the stablecoin ecosystem, ensuring that 90% of issued tokens are backed by Cash and Cash Equivalent. This strategic move highlights the company's dedication to upholding stability and transparency in all its dealings. Bitcoin The Consolidated Reserves Report (CRR) strongly supports Tether's fiscal health, demonstrating that its consolidated assets exceed its liabilities. As of December 31, 2023, the group boasted total assets of at least $97 billion, while total liabilities were approximately $91.6 billion, mainly from issued digital tokens. This surplus of assets over liabilities underscores the firm's financial robustness.

The investments made in sustainable energy, Bitcoin mining, data infrastructure, AI, peer-to-peer telecommunications, and other long-term strategic ventures are not counted within the reserves that back the issued tokens. This distinction emphasizes the company’s thoughtful resource allocation while maintaining the integrity of its token reserves.

The financial outcomes for Tether in the fourth quarter of 2023 illustrate a blend of substantial profits, effective risk management, and insightful investment strategies.

Moreover, Tether clarified that investments Please be aware that the information here is not meant as legal, tax, investment, or financial advice. Always invest only what you can afford to lose and seek independent financial counsel if you have questions. For more details, we recommend checking the terms and conditions and the help pages provided by the issuer or advertiser. MetaversePost is dedicated to delivering accurate and impartial reporting, but market dynamics can shift unexpectedly.

Kumar is a skilled Tech Journalist specializing in the evolving realms of AI/ML, marketing technology, and progressive fields like crypto, blockchain, and NFTs. With over three years in the field, Kumar has built a solid history of creating compelling stories, conducting meaningful interviews, and providing deep insights. His expertise is in crafting high-impact content, including articles and reports for key industry platforms, effectively distilling complex tech concepts into engaging narratives for a broad audience.