The crypto giant Tether is achieving great financial success and record profits

Tether, the company behind the popular stablecoin USDT, explains the status of its balance sheet every quarter. Last year’s upward trend was good for the company because it was once again able to achieve record profits. Plus, there’s more extra cash as collateral than ever before.

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Tether makes record profits

In a press release, the stablecoin issuer writes that it achieved a net profit of $2.85 billion in the fourth quarter. That’s another record. Another record was set in the third quarter. For the first time, 85.7 percent of the collateral for its stablecoin offering was cash and cash equivalents, which the industry considers to be as safe as possible.

Net profit also increased significantly. In May 2023, this amount was still 1.48 billion US dollars, so the amount has now almost doubled. The profit consists mainly of operating profits, which in turn come largely from the dividend received on the portfolio of US government bonds and capital in money market funds that are part of the collateral.

Additionally, net income for the full year 2023 was $6.2 billion, of which $4 billion consists of interest received.

Another part comes from “strategic projects” such as Bitcoin (BTC) mining, AI infrastructure, peer-to-peer (P2P) telecommunications and other activities. Unfortunately, no further details will be published. In any case, we know that investments have been made directly in Bitcoin mining since November.

The rest of the profit comes from “other investments” such as gold and Bitcoin (BTC). This is also reflected in the balance sheet. However, it is not clear whether Tether has sold these assets; it could be that it is an unrealized gain. After all, it is part of USDT’s collateral.

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USDT at all-time high

Speaking of USDT, stablecoins once again make up the majority of Tether’s debt. In total, the country has about $97 billion and debts of about $91.6 billion. So in total it has additional reserves of $5.4 billion. The rise in the price of Bitcoin and gold will have helped significantly.

There is now more USDT than ever before – as of Wednesday, the market cap was nearly $96.4 billion, according to CoinGecko. Despite this growth, reserves have grown faster.


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