According to CryptoPotato, stablecoin issuer Tether reported a record-breaking net profit of $2.85 billion in the fourth quarter of 2023. About $1 billion of this profit came from net operating gains, primarily from interests in the US Treasury, while the rest mainly resulted from the appreciation of gold and Bitcoin reserves. The company's excess reserves saw a significant increase, reaching a historic high of $5.4 billion, with an additional $640 million allocated to strategic investments in projects such as mining, AI infrastructure, and P2P telecommunications.
Tether's Q4 attestation, signed by BDO Italy, disclosed the elimination of secured loan risks from its token reserves, addressing community concerns. The company accumulated enough excess reserves to cover the entire exposure, as secured loans are typically overcollateralized. Tether's core operation involves managing the USDT stablecoin, which significantly contributed to the company's 2023 net profit of $6.2 billion. Approximately $4 billion of this profit came from investments in US Treasuries, Reverse Repo, and Money market funds, demonstrating successful diversification efforts.
Paolo Ardoino, CEO of Tether, stated in an official statement, '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.' In Q4, Tether increased its Bitcoin holdings by purchasing an additional 8,888 bitcoins, bringing its total to around 66,465 bitcoins, currently valued at approximately $2.8 billion. This report comes as USDT's market cap experiences a significant increase, currently standing above $96 billion.