Tether Releases Latest Asset Report: $700 Million Profit in Q4 2022

Tether, the issuer of the USDT stablecoin, has released its latest financial results, showing a net profit of $700 million for Q4 2022.

On February 9, Tether published its latest asset report, audited by BDO. The auditing firm confirmed:

“Tether’s reserves remain highly liquid, with the majority of investments held in cash, cash equivalents, and other short-term deposits.”

After accounting for expenses, the company reported a net profit of $700 million, raising Tether’s total assets to at least $67.04 billion as of December 31, 2022. The company’s total liabilities were $66.08 billion, indicating a reserve surplus of approximately $960 million.

This is also the first time in its 9-year history that Tether has disclosed the company's profit.

Tether’s Chief Technology Officer, Paolo Ardoino, proudly stated:

“Once again, Tether demonstrates its stability. Despite the chaos of 2022, we not only successfully redeemed $21 billion USDT but also issued over $10 billion USDT, showcasing Tether’s continuous growth.”

Regarding the source of the $700 million profit, a Tether representative explained that it is essentially “part of the equity.” It represents “additional capital” injected to strengthen the platform’s reserves.

In December, Tether announced plans to “settle” its collateralized loans in 2023, recognizing the increasing size of these loans and the risk of non-repayment in a crisis. However, according to today’s report, the company has reduced its loans to $300 million.

Previously, in October, the stablecoin issuer decided to completely eliminate commercial paper as collateral for USDT and increase direct exposure to U.S. Treasury bills. Other company assets include corporate bonds, money market funds, and precious metals.