Tether Reports $700 Million Net Profit in Q4 2022
• Tether, a stablecoin issuer, reported a net profit of $700 million in the fourth quarter of 2022.
• The company revealed that its reserves remain extremely liquid and that its consolidated assets exceed its liabilities.
• This is the first time the company has disclosed its profit figures to the public.
Attestation Report Published by Tether
Stablecoin issuer Tether published its latest attestation report on Thursday, February 9th. In this report, it was revealed that the company reported a net profit of $700 million in the previous quarter despite the ongoing bear market. Tether noted that this profit is in addition to its reserves and stated that the December report was attested by accounting firm BDO. The report added that Tether’s consolidated assets exceeded its liabilities as of Dec. 31, 2022, with consolidated total assets amounting to at least $67.04 billion and consolidated total liabilities amounting to $66.08 billion, resulting in excess reserves of at least $960 million. The net profit is part of shareholder equity with what’s remaining being held in cash, cash equivalents, and other short-term deposits.
Tether Pledges To Stop Issuing Secured Loans From Its Reserves
This news comes barely two months after Tether pledged to stop issuing secured loans from its reserves moving forward. A company spokesperson commented on this decision saying; “It’s basically additional capital sitting in the company to further strengthen Tether.“
Commentary On Latest Cryptocurrency News By Paolo Ardoino
Paolo Ardoino, Chief Technical Officer (CTO) at Tether commented on these results saying; “Tether once again proved its stability in the troubled year of 2022.“ He went on to add; „Not only were we able to smoothly execute over $21 billion dollars in redemptions during the chaotic events of the year but Tether has issued over $10 billion USDT an indication of continued organic growth and adoption of tether.“
Conclusion
In conclusion, it can be seen that despite an ongoing bear market, stablecoin issuer Tether reported a net profit of $700 million for Q4 2022 which is part of shareholders‘ equity with what’s remaining being held as liquid assets such as cash and short-term deposits. The news follows their pledge to stop issuing secured loans from their reserves further strengthening their overall financial position going forward into 2023 and beyond!