Tether Holdings Breaks Record with $2.85 Billion Net Profit in Q4 2023
Summary:
Tether Holdings Limited reported a record net profit of $2.85 billion in Q4 2023 due to Treasury interest and strong performance from assets such as bitcoin and gold. The company has $80.3 billion in U.S. Treasurys, $2.8 billion in Bitcoin, $3.5 billion in gold, and $1.5 billion venture capital investments under management. In 2023, Tether accumulated $5.4 billion in excess reserves, covering the $4.8 billion in secured loans. The company also announced the onboarding of the U.S. Federal Bureau of Investigation to aid in monitoring and curbing illicit activities.
Tether Holdings Limited, the entity behind Tether (USDT) stablecoin, has experienced a groundbreaking financial performance in the final quarter of 2023, propelled by a strong show of other assets and Treasury interest. Based on the company's attestation report, dated January 31, Tether's net earnings for the final three months of 2023 stood at an impressive $2.85 billion, with U.S. Treasury securities net interest contributing as much as $1 billion. The rest of the figure resulted from Bitcoin (BTC) and gold reserves. A study conducted by Zippia reveals Tether's workforce consists of 125 individuals, equating to a per-employee net gain of $22.8 million within the concluding quarter. Throughout the year, Tether's total net earnings reached $6.2 billion, with $4 billion coming from non-cryptocurrency investments like U.S. Treasury bonds. Tether's assets under management include $80.3 billion in U.S. Treasurys, $2.8 billion in Bitcoin, $3.5 billion in gold, and $1.5 billion in venture capital ventures. U.S. Department of the Treasury issues Treasurys as debt securities for government funding. An investor's return for providing the government funds becomes the yield on a Treasury. In the 12th month of 2023, the 1-year U.S. Treasury bill yield was 4.7%. Backed by the U.S. government, Treasuries are globally recognized as some of the safest investments one can make.
In 2022, Tether started to back its stablecoin with superior quality assets like T-Bills and gold holdings following extreme fear and bankruptcy declarations in the crypto industry. Fast-forward to September 2023, Tether announced its position as one of the world's prime buyers of U.S. Treasury bills. Responding to community anxieties over possible portfolio risks, the company is reported to have amassed excess reserves totaling $5.4 billion in 2023, sufficiently covering $4.8 billion in secured loans.
In an official statement, Tether expressed pride at having met its goal of eliminating the risk posed by secured loans on token reserves. BDO Global evaluated Tether's finances, and the company stood out as one of the crypto winter's victors, successfully occupying market space in 2023 with USDT tokens, making up over 70% of all circulating stablecoins. The recent announcement revealed Tether's partnership with the U.S. Federal Bureau of Investigation, as a cooperative measure to track and halt illegal operations. Magazine: US crypto regulation proposition motivated by legislators' fear and doubt.
Published At
1/31/2024 7:19:35 PM
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