USDT stablecoin issuer Tether Limited recorded a net profit of $1.48 billion in January-March, which is twice as high as in the previous period.
Tether’s Latest Q1 2023 Assurance Report Shows Reserves Surplus At All-Time High of $2.44B, up $1.48B in Net Profit; New Categories for Additional Transparency Reveals #Bitcoin and #gold Allocationshttps://t.co/G7QWB2VXqd pic.twitter.com/xUwOf4n1o7
— Tether (@tether_to) May 10, 2023
The figure was twice as high as expected CTO by Paolo Ardoino.
In the fourth quarter of 2022, net income was $700 million.
The reliability of the data specified in the document was confirmed by the BDO auditor.
The resulting profit replenished the equity capital of the company.
As of March 31, 2023, the company’s assets reached $81.8 billion, liabilities – $79.4 billion, equity – $2.44 billion. The last figure at the end of 2022 was $960 million.
“Another great quarter for Tether on multiple fronts. $1.48 billion in net profit, strengthening reserves and increasing the number of tokens in circulation by 20%. The latter is an indicator of customer confidence, which allows the company to be more optimistic about the future,” the document says.
In the attestation report, the company included additional categories in the reserves data for the first time.
Tether Limited disclosed that it owns $1.5 billion worth of bitcoin and $3.39 billion worth of physical gold bullion. They represent 1.8% and 4.1% of total reserves, respectively.
The largest share of USDT collateral (84.7%) is held in cash, cash equivalents and short-term deposits.
The structure looks like this:
- US Treasury bills – 76.15%;
- bills of other states – 0.07%;
- REPO transactions overnight — 10.8%;
- urgent REPO operations – 1.1%;
- money market funds – 10.7%;
- deposits in commercial banks – 0.7%.
“Tether is working to reduce dependence on deposits as a source of liquidity, seeing the repo market as an additional measure to ensure high standards of protection for its users,” — explained in the report.
Earlier, Tether analyzed articles from The Wall Street Journal and accused the publication of being biased against the company.
Recall that in February 2023, the media reported on the placement of USDT reserves in Cantor Fitzgerald and Capital Union.
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