Tether Holdings Reports Record-Breaking Profits in Q4 2023

Tether Holdings Limited, the entity behind the popular stablecoin Tether, has announced a “record-breaking net profit” for the last quarter of 2023. The surge in profits is attributed to Treasury interest and stellar performance from various assets.

Tether’s attestation report dated Jan. 31 reveals a net profit of $2.85 billion in Q4 2023. Notably, a substantial portion, up to $1 billion, was derived from net interest gained from United States Treasury securities. The remaining balance was contributed by reserves in Gold and Bitcoin.

Employee Productivity: $22.8 Million Net Profit per Employee

An analysis from Zippia highlights that Tether, with its workforce of 125 employees, achieved a net profit per employee amounting to $22.8 million in the last quarter.

Tether disclosed an impressive total net profit of $6.2 billion for the entire year. Of this amount, $4 billion originated from U.S. Treasury bonds and other non-crypto investments. The company’s total assets under management include $80.3 billion in U.S. Treasurys, $2.8 billion in BTC, $3.5 billion in gold, and $1.5 billion in venture capital investments.

Tether’s Financial Strategy: High-Quality Assets Backing Stablecoin

Since 2022, Tether has strategically shifted its approach, backing its stablecoin with higher-quality assets like T-bills and gold reserves. As of September 2023, the company proudly claimed to be among the world’s leading buyers of U.S. Treasury bills.

Addressing concerns about portfolio risk, Tether accumulated $5.4 billion in excess reserves in 2023, covering the outstanding $4.8 billion in secured loans. This move aimed to reassure the community about the stability of Tether’s token reserves.

Tether emerged as one of the crypto winners post the last crypto winter, consolidating its market share in 2023. USDT tokens, issued by Tether, now represent more than 70% of all stablecoins in circulation.