Tether Sees Record-Breaking Profits, Largely Driven by Interest Payments From US Treasuries

Stablecoin issuer Tether’s latest attestation report reveals that the firm made record profits in Q4, mostly driven by interest payments from US treasuries.

According to the report, Tether made $2.85 billion in profits during the fourth quarter of 2023, the highest net profit the firm has ever seen.

“In terms of financial performance, the fourth quarter witnessed a record-breaking net profit of $2.85 billion, of which ~$1 billion in net operating profits (were primarily interests from US Treasuries) with the remaining primarily from the appreciation of Gold and Bitcoin reserves.

The excess reserves registered an all-time high increase of $2.2 billion totaling $5.4 billion, while the remaining $640 million was invested in various strategic projects (such as mining, AI infrastructure, P2P telecommunications and others).

These are confirmed to remain outside of the consolidated reserves report within a new segregated VC umbrella, so that such investments don’t and won’t have any impact on the token reserves.”

According to the crypto firm, in addition to the cash influx it received from US Treasuries, the other asset classes that are a part of its portfolio – primarily gold and Bitcoin (BTC) – are also doing well.

“Net profit for 2023 for the Group is $6.2 billion, of which ~$4 billion represented the net operating profits generated by US Treasuries, Reverse Repo and Money market funds while the rest was generated through the performance of other asset classes.

Tether also continued to experience positive contributions from all asset classes, notably in Gold, Bitcoin, and other investments. The Group achieved new record highs in both direct and indirect ownership of US Treasuries, with $80.3 billion exposure.”

As of December 1st, 2023, Tether has $5.4 billion in excess funds – which covers its $4.8 billion in outstanding loans included in USDT reserves – and over $98 billion in assets under its management, according to the report.

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