Tether’s Fourth Quarter Excess Reserves Reach $5.4 Billion, Earns $6.2 Billion in 2023
Stablecoin issuer Tether has released its fourth quarter audit report signed by accounting firm BDO, showing that its assets once again exceed its liabilities, with excess reserves reaching $5.4 billion. Tether has announced a net profit of $6.2 billion for 2023, with approximately $4 billion coming from net operating profit generated by US Treasury bonds, reverse repurchase agreements, and money market funds, while the rest comes from other asset classes such as gold and bitcoin performance.
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Tether’s Excess Reserves Reach $5.4 Billion in Q4
Tether’s Reserve Breakdown
Tether’s Annual Net Profit of $6.2 Billion
Stablecoin Issuer Tether
Announces
its Q4 2023
Audit Opinion
issued by BDO, one of the world’s top five accounting firms.
As of December 31, 2023, the group’s total assets amounted to $97,020,394,556, with total liabilities of $91,597,732,663, of which liabilities related to digital token issuance amounted 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 by Tether as Shareholder Capital Cushion, amounting to approximately $5.4 billion.
In addition, Tether also invests 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 states that these investments, which have been confirmed to be held under a new independent venture protection umbrella, will not and have not had any impact on token reserves.
A portion of the asset reserves, 84.58%, is held in the form of cash, cash equivalents, and other short-term deposits, with the secured loan ratio reduced to 4.95% (a decrease of $360 million), which Tether previously announced would be reduced to zero in 2023. However, this time Tether’s statement changed to “unredeemed secured loans are fully covered by undistributed accumulated profits called excess reserves” (secured loans amount to $4.8 billion, excess reserves amount to $5.4 billion). It seems that there is no intention to cancel these secured loans.
(
Tether provides €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 has announced a net profit of $6.2 billion for 2023, with approximately $4 billion coming from net operating profit generated by US Treasury bonds, reverse repurchase agreements, and money market funds, while the rest comes from other asset classes such as gold and bitcoin performance.
Tether CEO Paolo Ardoino emphasized, “The certification of Tether’s fourth quarter highlights our commitment to transparency, stability, and responsible financial management. Achieving a high proportion of cash and cash equivalents reserves reflects our dedication to liquidity and stability. Furthermore, our investments in sustainable energy, bitcoin mining, data, artificial intelligence infrastructure, and P2P telecommunications technology demonstrate our commitment to more areas of a sustainable and inclusive financial future.”
Paolo Ardoino
Tether
Audit Report
Further reading
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