Tether Reports $6.2 Billion Profit in 2023

The latest financial report from Tether indicates it was one of the most profitable companies in the cryptocurrency sector in 2023.

Tether Achieves $6.2 Billion Profit in 2023. Image: Financial Times

On the evening of January 31, 2024, Tether (USDT), the stablecoin issuer, released its financial report for Q4 2023 and the entire previous year, showcasing remarkable figures.

Specifically, in the last quarter of 2023, Tether recorded a profit of $2.85 billion – the highest figure to date. Of this, $1 billion came from holding U.S. Treasury bonds, while the remaining $1.85 billion was from investments in Bitcoin and gold.

The latest profit figures have brought Tether's total earnings for the entire year of 2023 to $6.2 billion.

Tether announced it would allocate $2.2 billion of its Q4 2023 profits to bolster the reserve assets surplus fund to support additional backing for the USDT token, increasing the fund's value to $5.4 billion. The remaining $640 million will be used for investment activities and further development in areas such as AI, coin mining, P2P trading infrastructure, and more.

As of December 31, 2023, Tether reported holding $97 billion in assets to secure the $91.5 billion USDT circulating in the market.

Among these assets, U.S. Treasury bonds accounted for the largest portion at $80.3 billion (both direct and indirect holdings), alongside other cash-equivalent assets. Additionally, the company owns $3.5 billion in gold, $2.8 billion in Bitcoin, $3.7 billion in other investments, and $4.8 billion in external loan assets.

Assets held by Tether as of December 31, 2023. Source: Tether

Tether stated that 90% of the USDT issued in the cryptocurrency market is currently backed by cash-equivalent assets, ensuring liquidity whenever necessary.

Paolo Ardoino, CEO of Tether, remarked:

“The Q4 2023 asset attestation report from Tether continues to demonstrate our commitment to transparency, stability, and responsible financial management. Achieving the highest-ever cash-backed debt ratio reflects our emphasis on financial stability. The $6.2 billion net profit for the past year underscores Tether's financial strength. Furthermore, investments in sustainable energy, Bitcoin mining, AI infrastructure, and P2P technology demonstrate Tether's commitment to a robust financial industry serving everyone.”