Stablecoin issuer Tether USDT +0.27% reached a record $2.9 billion net profit in Q4 2023 and set an all-time high increase in excess reserves backing its tokens in circulation, according to its latest attestation report conducted by global auditing firm BDO.

Net operating profit was around $1 billion, primarily resulting from holdings of U.S. Treasuries, with the rest of the gains largely related to the appreciation in the value of Tether's bitcoin and gold reserves during the quarter.

The profit increased Tether's excess reserves by $2.2 billion to a total of $5.4 billion. The remainder was used to fund project investments, including mining, AI infrastructure and P2P communications, which it does not consider part of its reserves, the firm said.

BDO confirmed Tether's $4.8 billion in outstanding unsecured loans at year-end were fully covered by the excess reserves. Tether said it was proud to have removed the risk of secured loans from its token reserves.

"While such secured loans are widely overcollateralized, Tether accumulated enough excess reserves to cover the entirety of the exposure," the firm stated. "This is in response to the community's past expressed concerns about this part of the portfolio."

Tether's primary business is running the USDT stablecoin, which helped it generate a net profit of $6.2 billion for the year. 

Tether also acquired an additional 8,888 bitcoins in Q4, increasing its total holdings to about 66,465 BTC -0.12% — currently worth around $2.8 billion — The Block reported earlier this month.

As of Dec. 31, the firm's consolidated reserves amounted to at least $97 billion, including $80.3 billion worth of U.S Treasuries and $3.5 billion of gold. Tether's consolidated liabilities relating to digital tokens issued stand at $91.6 billion, 90% backed by cash or cash equivalents.

"Tether’s Q4 attestation underscores our commitment to transparency, stability, and responsible financial management," Tether CEO Paolo Ardoino said.

Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.

© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。