• Tether reported a net profit of $700 million in its recent Q4 attestation report.
• The company revealed that the majority of its investments are held in cash, cash equivalents, and other short-term deposits.
• Tether’s consolidated assets exceeded its liabilities as of Dec. 31, 2022, reflecting excess reserves of at least $960 million.

Tether Reports Net Profit in Q4 Attestation Report

Stablecoin issuer Tether recently published its latest attestation report on Thursday, February 9th revealing a net profit of $700 million in the previous quarter despite the ongoing bear market. In addition to this profit figure, Tether also reported that its reserves remain extremely liquid with the majority of investments being held in cash and other short-term deposits.

Excess Reserves

The company further revealed that their consolidated total assets amounted to at least $67.04 billion while their consolidated liabilities amounted to $66.08 billion as of December 31st 2022 reflecting excess reserves amounting up to at least $960 million. This is the first time that Tether has disclosed such figures which have been attested by an accounting firm BDO.

Ceasing Secured Loans From Reserves

This news comes barely two months after Tether pledged to stop issuing secured loans from its reserves which would be part of shareholder equity or what is left over from reserves after all expenses have been accounted for.

Adoption & Growth

In a statement released by CTO Paolo Ardoino he said; “Tether once again proved its stability in the troubled year of 2022. Not only were we able to smoothly execute over $21 billion dollars in redemptions during the chaotic events of the year, but Tether has, on the other side, issued over 10 billion USDT an indication of continued organic growth and adoption”

Conclusion

The latest profits reported by Tether show how stablecoins can still generate high returns even during bear markets while maintaining liquidity and security for investors‘ funds through proper management and transparency