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In 2023, Tether surged towards the $100 billion milestone, riding the waves of a $6.2 billion profit, as revealed in the company's Q4 attestation report released on January 31st.
The financial leap outlined in Tether's latest financial disclosures underscores a strategic approach to asset allocation.
A significant portion of this profit, approximately $4 billion, stemmed from investments in US Treasuries, Reverse Repo, and Money Market funds, forming the bulk of the company's reserves.
By December 31, the stablecoin giant boasted total assets of $97 billion, outshining liabilities of $91.6 billion.
In their statement, Tether highlighted a record-breaking net profit of $2.85 billion in the fourth quarter alone, with a substantial portion attributed to interests from US Treasuries, and the rest from the appreciation of Gold and Bitcoin reserves.
Throughout the year, Tether diligently replenished its excess reserve pool, now standing at $5.4 billion, covering outstanding secured loans worth $4.8 billion. This move, once criticized, now serves as a buffer against insolvency risks, crucial for maintaining the stability of Tether's tokens.
The bulk of Tether's portfolio comprises $82.06 billion in cash equivalents, primarily US Treasuries, supplemented by recent investments in gold, Bitcoin, and other holdings.
Moreover, Tether allocated $1.5 billion into venture capital investments, diversifying its portfolio across AI infrastructure, Bitcoin mining, and P2P telecommunications technology.
Echoing these financial strides, Tether's CTO Paolo Ardoino emphasized the substantial net profits generated throughout the year, a testament to the company's financial robustness.
December witnessed a vote of confidence as Cantor Fitzgerald CEO Howard Lutnick confirmed holding Tether's Treasury bills, allaying concerns about token backing.
Tether's achievements in 2023 underscore a year of remarkable growth and astute asset management. With a strategic focus on diversification and maintaining robust reserves, Tether solidifies its leadership in the stablecoin arena.
