Home » The Q4 Attestation from Tether shows $2.85 billion in profit and records new highs

The Q4 Attestation from Tether shows $2.85 billion in profit and records new highs

The investments made in data, AI infrastructure, P2P telecommunications technology, renewable energy, Bitcoin mining,

by V. Sinclair
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The assurance opinion for the fourth quarter of 2023, which was completed by the internationally recognized independent auditing firm BDO, was made public today by Tether Holdings Limited (BVI). This attestation offers a thorough analysis of the assets owned by the Group as of December 31, 2023, and it confirms the accuracy of Tether’s Consolidated Reserves Report (CRR).

In terms of financial performance, the fourth quarter saw a record-breaking $2.85 billion net profit, of which around $1 billion came from net operating profits (which were mainly interests from US Treasury bonds) and the remainder amount mostly came from the appreciation of reserves of gold and bitcoin. The excess reserves increased by an unprecedented $2.2 billion to $5.4 billion, with the remaining $640 million going into a number of strategic initiatives (including mining, AI infrastructure, and peer-to-peer lending).

P2P networks, among other things). It is confirmed that these will continue to be outside of the consolidated reserves report under a new, segregated venture capital framework, meaning that these investments have no effect on the token reserves now or in the future. By year’s end, the undistributed accumulated profits known as surplus reserves (i.e., $5.4 billion in excess reserves compared to $4.8 billion in secured loans) fully cover the outstanding secured loans, which are backed by highly liquid assets as attested in the BDO attestation.

With great pride, Tether announces that it has succeeded in eliminating the risk associated with secured loans from the token reserves. Despite the fact that these secured loans are frequently overcollateralized, Tether has amassed sufficient surplus reserves to meet the full risk.

The Group’s net profit for 2023 is $6.2 billion, of which about $4 billion came from the net operating income of US Treasuries, Reverse Repo, and money market funds. The remaining $6.2 billion came from the performance of other asset classes.

Positive contributions to Tether came from all asset classes as well, most notably from gold, bitcoin, and other investments. With $80.3 billion in exposure to US Treasuries (including overnight reverse repos backed by US Treasuries and money market funds invested in US Treasuries), the Group reached new record highs in both direct and indirect ownership of US Treasuries.

Tether demonstrated its commitment to preserving liquidity within the stablecoin ecosystem by issuing tokens backed by cash and cash equivalent at an astounding 90%, in keeping with the company’s commitment to transparency and stability.

Tether’s robust financial condition is reaffirmed in the Consolidated Reserves Report (CRR), where consolidated assets exceed consolidated liabilities.

As of December 31, 2023, the Company’s Management makes the following claims:

  • Consolidated total assets of the Group are at least US$ 97,020,394,556.
  • The combined total liabilities of the Group are US$ 91,597,732,663, of which US$ 91,572,956,801 are related to issued digital tokens.
  • Consolidated assets of the Group are greater than consolidated liabilities.
  • The investments made in data, AI infrastructure, P2P telecommunications technology, renewable energy, Bitcoin mining, and other long-term proprietary projects are not taken into account by Tether Group when determining the portion of its reserves supporting the token that is issued. Investments in these fields totaled US$ $642’551’135 in Q4 2023 (USD 1’452’205’608 since the year’s beginning).

According to the figure below, Tether had $5.4 billion in excess reserves as of December 31, 2023, which was sufficient to satisfy the approximately $4.8 billion in outstanding secured loans that were part of the USD₴ reserves.

Q4 attestation image 1

The US Treasury, Cash, and Cash Equivalent growth is plotted against the total number of outstanding Tether Tokens in the chart below.

Q4 Attestation 2

“Tether’s Q4 attestation underscores our commitment to transparency, stability, and responsible financial management,” stressed Paolo Ardoino, CEO of the company. Our commitment to stability and liquidity is demonstrated by the fact that we have the largest percentage of reserves in cash and cash equivalents. Our strong financial position is demonstrated by the significant net profits of $6.2 billion that we produced over the year, including the last quarter. In addition, our dedication to a more sustainable and inclusive financial future is demonstrated by our investments in P2P telecommunications technology, data, AI infrastructure, sustainable energy, and Bitcoin mining.”

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