The issuer of the largest stablecoin by capitalization, Tether USD (USDT), Tether Holdings Limited, reported a “record” $2.85 billion in profit in the fourth quarter of 2023.
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According to the report, as of January 31, 2024, the company’s total assets amounted to $97.02 billion , with excess reserves estimated at $5.4 billion. The majority of Tether's assets consist of US Treasuries amounting to $80.3 billion.
Last year, the company generated a net operating income of $6.2 billion. At the same time, $4 billion of profit was received from investments in US Treasury bonds and short-term financial instruments.
The rest of the profit came from the performance of other asset classes. The conclusion notes that the company made money on all investments, “this is especially evident in gold, bitcoin and other investments.”
“Tether has issued tokens that are 90% backed by highly liquid assets such as cash and cash equivalents, providing liquidity to the stablecoin ecosystem,” the report states.
Paolo Ardoino, CEO of Tether, said: “Tether's fourth quarter certification underscores our commitment to transparency, stability and responsible financial management. Achieving the highest percentage of reserves in cash and cash equivalents shows that Tether is committed to liquidity and stability.”
Tether Limited was incorporated in 2014 in Hong Kong. The token gives crypto market participants the opportunity to use a stable digital asset – a stablecoin – whose rate is pegged to the US dollar and is not as volatile as other cryptocurrencies.
In mid-May, Tether announced a change in investment strategy and a decision to increase the share of bitcoin in its collateral reserves of their tokens. The company said it would spend up to 15% of realized operating profits on the purchase of its first cryptocurrency.
At the end of May, Tether announced that it was expanding its operations, investing in green electricity production in Uruguay and would mine Bitcoin there.< br>
In June, Tether took part in a $1 billion funding round to build the world's largest crypto farm. The company, the issuer of the leading stablecoin USDT, has invested in the construction of a Bitcoin mining site in El Salvador.