Tether’s ‘Record-Breaking’ Q4 Profit Partly Attributed to Gold and BTC Price Appreciation

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In the last quarter of 2023, Tether Holdings Limited registered a “record-breaking net profit of $2.85 billion.” Overall, the stablecoin issuer’s net profit in 2023 topped $6.2 billion. Tether’s secured loans ($4.8 billion), which are collateralized by highly liquid assets, were “fully covered by the undistributed accumulated profits known as excess reserves ($5.4 billion).”

Bitcoin and Gold Price Appreciation Contribute to Tether’s Record Profit

According to Tether Holdings Limited’s latest consolidated reserves report (CRR), the stablecoin issuer recorded a record-breaking net profit of $2.85 billion in the fourth quarter of 2023. Of this, $1 billion was generated from interest on Tether’s U.S. treasuries holdings, while the remainder was primarily from the appreciation of gold and bitcoin reserves.

Overall, Tether’s net profit in 2023 was $6.2 billion, with approximately $4 billion representing the net operating profits generated by U.S. Treasuries, Reverse Repo, and Money market funds. The remaining $2.2 billion was generated by other asset classes.

In addition to the positive financial performance, Tether Holdings Limited also experienced an all-time-high increase in excess reserves, which rose by $2.2 billion to close at $5.4 billion. As a result, Tether’s secured loans ($4.8 billion), which are collateralized by highly liquid assets, are “fully covered by the undistributed accumulated profits known as excess reserves ($5.4 billion).”

Commenting on the stablecoin issuer’s financial performance and the latest BDO attestation, Paolo Ardoino, the CEO of Tether, said:

Tether’s Q4 attestation underscores our commitment to transparency, stability, and responsible financial management. Achieving the highest percentage of reserves in Cash and Cash Equivalents reflects our dedication to liquidity and stability. The substantial net profits generated not only in the last quarter of the year but throughout the year, amounting to $6.2 billion, showcases our financial strength.

Ardoino also touted Tether’s investment in sustainable energy, bitcoin (BTC) mining, artificial intelligence (AI), and peer-to-peer technology as evidence of his firm commitment to an inclusive financial future.

What are your thoughts on Tether Holdings’ latest financial performance? Let us know what you think in the comments section below.

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