Tether’s Financial Milestones
Roughly $4 billion of those profits were “generated by US Treasuries, Reverse Repo and Money market funds,” where the company keeps the vast majority of its reserves. As of December 31, the stablecoin giant held total assets worth $97 billion, versus $91.6 billion in liabilities.
Tether declared an impressive feat in the fourth quarter, with a record-breaking net profit of $2.85 billion. An astonishing $1 billion was attributed to net operating profits, while the rest was largely attributed to the appreciation of their Gold and Bitcoin reserves.
Over the course of the past year, Tether diligently allocated the bulk of its earnings towards bolstering its surplus reserve cache, safeguarding against any potential financial instability. This strategic move has now resulted in a substantial sum of $5.4 billion, fully covering the entirety of Tether’s secured loans amounting to $4.8 billion. Tether’s past decision to rely on controversial reserves received immense backlash, as it posed a potential threat to the stability of their portfolio. As the foremost stablecoin provider, Tether bears the responsibility of maintaining a constant 1:1 backing of US dollars for their stablecoins, in order to preserve their value. Any failure to do so could result in a catastrophic financial collapse across the entire industry.
The Splendor of Tether’s Asset Distribution
Tether’s treasure trove boasts a whopping $82.06 billion of “cash and cash equivalents”, with a large chunk of it consisting of $80.3 billion in secure US Treasuries. But that’s not all – their savvy investments have yielded even more riches, including $3.6 billion in shiny gold and $2.1 billion in the ever-popular Bitcoin (BTC). Not to mention, another $5.6 billion in mysterious “other” holdings. But Tether’s financial empire doesn’t stop there. With a bold vision for the future, they have also dabbled in ventures such as AI infrastructure, Bitcoin mining, and P2P telecommunications technology, totaling a whopping $1.5 billion in VC investments. These assets, however, do not factor into the reserves backing their tokens.
According to Tether’s esteemed CTO, Paolo Ardoino, the past year has been a testament to our financial fortitude, as our profits have reached a staggering $6.2 billion, not only in the final quarter, but consistently throughout. CNBC’s recent interview with Cantor Fitzgerald’s CEO, Howard Lutnick, confirms our partnership and solidifies any doubts about our stablecoins’ backing. Tether proudly holds the title of the largest stablecoin on the market, with our closest competitor, Circle, falling far behind at a mere $26.7 billion in circulation. And as Circle prepares for an IPO, we continue to soar with our impressive financial track record. But our success is not simply a stroke of luck. It is a result of our unwavering commitment to strategic asset management and diversification, solidifying our position as a leader in the stablecoin industry. Moving forward, our dedication to financial stability and security will remain at the forefront, ensuring the trust and confidence of our valued users.
