Tether's fourth-quarter excess reserves reach $5.4 billion, projected to earn $6.2 billion in 2023.

The stablecoin issuer Tether has released its fourth-quarter attestation report signed by the accounting firm BDO, with assets once again surpassing liabilities, resulting in excess reserves of $5.4 billion. Tether disclosed a net profit of $6.2 billion for the year 2023, with around $4 billion generated from net operating income from US treasuries, reverse repurchase agreements, and money market funds, while the rest came from other asset classes such as gold and Bitcoin.

Tether's Q4 Excess Reserves Reach $5.4 Billion

The stablecoin issuer Tether has announced the issuance of the fourth-quarter attestation for 2023 by BDO, one of the top five global accounting firms.

As of December 31, 2023, the total assets of the group amounted to $97,020,394,556, with total liabilities of $91,597,732,663, of which liabilities related to digital token issuance were $91,572,956,801. The assets exceeded the liabilities. The difference between assets and liabilities, which would be classified as shareholder equity on a traditional balance sheet, is referred to by Tether as Shareholder Capital Cushion, amounting to approximately $5.4 billion.

In addition, Tether has made investments in sustainable energy, Bitcoin mining, data, AI infrastructure, P2P telecom technology, and other long-term proprietary investments. In the fourth quarter of 2023, investments in these areas reached $640 million, totaling $1.45 billion since the beginning of the year. Tether stated that these investments have been confirmed to be held outside the combined reserve reports under a new independent venture protection umbrella, and therefore, such investments will neither affect nor be affected by token reserves.

Tether Reserve Details

Regarding the asset reserves, 84.58% are held in the form of cash, cash equivalents, and other short-term deposits, while the secured loans ratio decreased to 4.95%, a reduction of $360 million, after Tether officially announced its intention to reduce it to zero in 2023. However, Tether now states that "unpaid secured loans are fully covered by undistributed accumulated profits called excess reserve funds." Secured loans amount to $4.8 billion, and excess reserve funds amount to $5.4 billion. There seems to be no intention to cancel these secured loans.

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Tether also holds $28.2 billion worth of Bitcoin and $35.1 billion worth of precious metals, namely gold.

Tether's Annual Net Profit of $6.2 Billion

Tether has disclosed its 2023 net profit to be $6.2 billion, with approximately $4 billion generated from net operating profits from U.S. treasuries, reverse repurchase agreements, and money market funds, and the rest from other asset classes such as gold and Bitcoin performance.

Tether CEO Paolo Ardoino emphasized: "The certification of Tether's Q4 highlights our commitment to transparency, stability, and responsible financial management. Achieving a high ratio of cash and cash equivalents reserves reflects our dedication to liquidity and stability. Furthermore, our investments in sustainable energy, Bitcoin mining, data, AI infrastructure, and P2P telecom technology demonstrate our commitment to more areas for a sustainable and inclusive financial future."