- A total of $5.4 billion is now in Tether’s surplus reserves, an increase of $2.2 billion.
- This is according to its latest attestation report by global auditing company BDO.
Tether, the issuer of the USDT stablecoin, saw an all-time high growth in the surplus reserves supporting its tokens in circulation and a record-breaking $2.9 billion net profit in Q4 2023, according to its latest attestation report completed by global auditing company BDO.
The majority of Tether’s net operational profit of almost $1 billion came from its holdings of U.S. Treasuries, while the remaining portion was mostly attributable to the quarterly growth in value of its bitcoin and gold reserves.
Widely Overcollateralized
A total of $5.4 billion is now in Tether’s surplus reserves, an increase of $2.2 billion from the profit. The rest was put into investments in projects like mining, AI infrastructure, and P2P communications. Moreover, the company claims they are not reserves.
BDO verified that the surplus reserves completely covered Tether’s $4.8 billion in outstanding unsecured loans at the end of the year. The elimination of the collateral risk associated with its token reserves was something of which Tether was justifiably proud.
The firm stated:
“While such secured loans are widely overcollateralized, Tether accumulated enough excess reserves to cover the entirety of the exposure. This is in response to the community’s past expressed concerns about this part of the portfolio.”
The USDT stablecoin is Tether’s main product, and it contributed to the company’s $6.2 billion in earnings for the year. In Q4, Tether added 8,888 bitcoins to its assets, bringing the total to around 66,465 BTC, which is presently valued at over $2.8 billion.
With $80.3 billion in US Treasuries and $3.5 billion in gold, the company’s consolidated reserves reached $97 billion as of December 31.
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