Stablecoin issuer issued its latest attestation report for the fourth quarter of 2022.
The company reported a net profit of $700 million in Q4.
The profit is in addition to the company’s reserves.
Tether publishes its Q4 attestation report
Stablecoin issuer Tether published its latest attestation report on Thursday, February 9th. The company reported a net profit of $700 million in the previous quarter despite the ongoing bear market.
Tether revealed that the profit is in addition to its reserves. While commenting on this latest cryptocurrency news, Tether said;
“Tether’s reserves remain extremely liquid, with the majority of its investments being held in cash, cash equivalents, and other short-term deposits.”
The stablecoin issuer added that the December report was attested by the accounting firm BDO. The report added that Tether’s consolidated assets exceeded its liabilities as of Dec. 31, 2022.
The report comes barely two months after Tether pledged to stop issuing secured loans from its reserves.
The company reported that its consolidated total assets amounted to at least $67.04 billion in the last quarter. Furthermore, its consolidated total liabilities amounted to $66.08 billion. Hence, reflecting excess reserves of at least $960 million.
The net profit is part of shareholder equity
Tether pointed out that the reported profit is part of shareholder equity, that is, what’s in excess of reserves. A company spokesperson added that;
“It’s basically additional capital sitting in the company to further strengthen Tether.”
This is the first time the stablecoin issuer has disclosed its profit figures. The company didn’t reveal how it made its profits.
In a statement, Tether CTO Paolo Ardoino said;
“Tether once again proved its stability in the troubled year of 2022. Not only were we able to smoothly execute over $21 billion dollars in redemptions during the chaotic events of the year, but Tether has, on the other side, issued over $10 billion of USDT, an indication of continued organic growth and adoption of Tether.”
The stablecoin issuer removed commercial paper from its reserves in October 2022. Tether’s other assets include funds, precious metals, and corporate bonds.
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Highlighting a recent financial report, Tether Limited, the issuer of the largest stablecoin, USDT, has announced $700 million in net profit for the fourth quarter of 2022.
The profit is primarily attributed to the growth of both their unrestricted cash balance and their grand total of USDT in circulation, which both increased by more than 30% over the time frame. Tether saw a total of 7.8 billion USDT as of the end of February this year, compared to 6.3 billion USDT at the end of December last year. This gives Tether a $60 billion market capitalization for the fourth quarter – a stark increase from its $45 billion total at the end of 2021.
Tether’s balance sheet experienced increased liquidity in the fourth quarter, with the company listing unrestricted cash of $3.511 billion compared to $2.6 Billion at the end of the previous quarter. This is due to the influx of new users, the demand for new digital assets, and the institutionalization of cryptocurrencies.
Tether has long been viewed as an instrument that allows traders to exchange and store their funds without taking on the risk associated with fluctuating crypto markets. With the company’s notable success in the fourth quarter, this sentiment appears to be unquestionably true.
In addition to its financial success, Tether has also announced a number of recent collaborations that will help to further its goal of expanding its potential customer base while simultaneously obtaining a wider range of industry partnerships.
The success of the fourth quarter of 2022 is a demonstration that Tether is capable of and actively pursues in meeting the increasing demand for stablecoins, as well as making progress in terms of expanding the scope of its services for users.