$700M Net Profit: Tether Reports Stellar Q4 2022 Results
• Tether, a stablecoin issuer, reported a net profit of $700 million in Q4 2022.
• The company’s reserves remain liquid and assets exceeded liabilities as of Dec. 31, 2022.
• This is the first time that Tether has disclosed its profits figures to public.
Tether Reports $700 Million Net Profit in Q4 2022
Stablecoin issuer Tether published its latest attestation report on Thursday, February 9th and reported a net profit of $700 million in the previous quarter despite the ongoing bear market. The company revealed that the profit is in addition to its reserves and was attested by accounting firm BDO.
Reserves Remain Liquid
Tether stated that its reserves remain extremely liquid, with the majority of investments being held in cash, cash equivalents, and other short-term deposits. Its consolidated total assets amounted to at least $67.04 billion in the last quarter, while its consolidated total liabilities amounted to $66.08 billion; reflecting excess reserves of at least $960 million.
Profit Part Of Shareholder Equity
The reported profit is part of shareholder equity; or what’s left over from excess reserves after all liabilities are paid off. A company spokesperson further added that; „It’s basically additional capital sitting in the company to further strengthen Tether.“
Company Ceases Secured Loans From Reserves
This news comes barely two months after Tether pledged to stop issuing secured loans from its reserves. In a statement made by CTO Paolo Ardoino; “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 but Tether has issued over 10 billion USDT” – an indication of continued growth and adoption for their stablecoin product.
Tether has been successful at maintaining liquidity and profitability throughout an unstable crypto market – indicating their success towards becoming one of the most trusted names within cryptocurrency services today. As they continue to extend their reach across blockchain networks, we can look forward to more positive reports like this one coming out from them soon!