Tether reaches a profit of 6.2 billion USD in 2023
Tether's latest financial report shows that it is one of the most profitable companies in the cryptocurrency industry in 2023.
Tether achieves a profit of 6.2 billion USD in 2023. Photo: Financial Times
On the evening of January 31, 2024, the company issued stablecoinsTether (USDT)has announced its financial statements for the fourth quarter of 2023 as well as the entire last year, with many surprising numbers.
Specifically, in the last quarter of 2023, Tether recorded a profit of 2.85 billion USD - the highest number ever. Of which, 1 billion USD is profit from holding US Treasury bonds, while the remaining 1.85 billion USD is profit from investing in Bitcoin and gold.
The latest profit brought Tether's total profit for the entire year 2023 to 6.2 billion USD .
Tether announced that it would spend 2.2 billion USD in profits in the fourth quarter of 2023 to put into the asset surplus fund to supplement USDT, causing the value of the fund to swell to 5.4 billion USD . The remaining 640 million USD will be used by the company in investment activities and further development of business areas such as AI, coin mining, P2P transaction infrastructure,...
As of December 31, 2023, Tether said it holds 97 billion USD in assets to guarantee 91.5 billion USDT issued to the market.
Among these assets, the largest portion is still US Treasury bonds with 80.3 billion USD (both directly and indirectly) and other types of cash equivalent assets. In addition, the company also owns $3.5 billion in gold metal, $2.8 billion in Bitcoin, $3.7 billion in other investments and $4.8 billion in external loan assets.
Assets held by Tether as of December 31, 2023. Source: Tether
Tether claims that 90% of USDT issued in the cryptocurrency market is currently backed by cash-equivalent assets, ensuring liquidity whenever needed.
Tether CEO Paolo Ardoino said:
“Tether's Q4 2023 asset attestation report continues to demonstrate our commitment to transparency, stability, and responsible financial governance. Achieving the highest ever cash-secured debt ratio reflects the company's emphasis on liquidity stability. The net profit achieved last year was 6.2 billion USD, showing Tether's financial strength. And yet, investments in sustainable energy, Bitcoin mining, AI infrastructure and P2P technology demonstrate Tether's determination for a strong financial industry that serves everyone.”
