Stablecoin issuer Tether has released its fourth-quarter attestation report signed by accounting firm BDO, with assets once again surpassing liabilities, with excess reserves reaching $5.4 billion. Tether announced its net profit for 2023 to be $6.2 billion, of which approximately $4 billion came from net operating profit generated by US Treasury bonds, repurchase agreements, and money market funds, while the remainder came from other asset classes such as gold and Bitcoin.
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Tether Excess Reserves Reach $5.4 Billion in Q4
Tether Reserve Breakdown
Tether Annual Net Profit of $6.2 Billion
Stablecoin issuer Tether
Announces
its fourth-quarter attestation opinion for 2023
issued by BDO, one of the world’s top five accounting firms.
As of December 31, 2023, the group’s total assets were $97,020,394,556, and total liabilities were $91,597,732,663, with liabilities related to digital token issuance amounting to $91,572,956,801. Assets exceeded liabilities. The difference between assets and liabilities, which would be listed as shareholders’ equity on a traditional balance sheet, is referred to as the Shareholder Capital Cushion by Tether, amounting to approximately $5.4 billion.
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In addition, Tether also invested in sustainable energy, Bitcoin mining, data, artificial intelligence infrastructure, P2P telecommunications technology, and other long-term proprietary investments. In the fourth quarter of 2023, investments in these areas reached $640 million, totaling $1.45 billion since the beginning of the year. Tether stated that these investments, which have been confirmed to be held under a new independent venture protection umbrella, are separate from the consolidated reserve report and therefore do not and will not have any impact on token reserves.
84.58% of the reserve assets are held in the form of cash, cash equivalents, and other short-term deposits, with the collateralized loans ratio reduced to 4.95% (a decrease of $360 million), as Tether officials previously announced their intention to reduce it to zero in 2023. However, this time Tether stated that “the outstanding collateralized loans are fully covered by the undistributed accumulated profits called excess reserves” (collateralized loans amount to $4.8 billion, excess reserves amount to $5.4 billion). It seems that there is no intention to cancel these collateralized loans.
(
Tether offers €575 million in unsecured debt financing! Strategic investment in Northern Data
)
Tether also holds $2.82 billion worth of Bitcoin and $3.51 billion worth of precious metals (i.e., gold).
Tether announced its net profit for 2023 to be $6.2 billion, of which approximately $4 billion came from net operating profit generated by US Treasury bonds, repurchase agreements, and money market funds, while the remainder came from other asset classes such as gold and Bitcoin.
Tether CEO Paolo Ardoino emphasized, “The attestation of Tether’s fourth quarter highlights our commitment to transparency, stability, and responsible financial management. Achieving a high proportion of cash and cash equivalents reserve reflects our dedication to liquidity and stability. Additionally, our investments in sustainable energy, Bitcoin mining, data, artificial intelligence infrastructure, and P2P telecommunications technology demonstrate our commitment to a more inclusive and sustainable financial future.”
Paolo Ardoino
Tether
Attestation Report
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