Record Profits for Tether Driven by Treasury Holdings

Tether Holdings Limited, the entity behind the stablecoin Tether (USDT), reported a groundbreaking net profit in the fourth quarter of 2023, reaching $2.85 billion. The surge in profits is attributed to substantial interest from U.S. Treasury securities and robust performance in alternative assets.

Treasury Triumph

In its attestation report released on January 31, Tether revealed that $1 billion of the net profit was derived from interest on U.S. Treasury securities. The remaining balance saw contributions from reserves in gold and Bitcoin, which is currently valued at $43,448.

Employee Profitability

With an analysis from Zippia indicating a workforce of 125 individuals, Tether boasted an impressive net profit per employee of $22.8 million for the last quarter, underscoring the company's efficiency.

Annual Profits and Asset Portfolio

Tether disclosed a total net profit of $6.2 billion for the entire year, with a significant portion, $4 billion, stemming from U.S. Treasury bonds and other non-crypto investments. The stablecoin issuer manages assets totaling $80.3 billion in U.S. Treasurys, $2.8 billion in Bitcoin, $3.5 billion in gold, and $1.5 billion in venture capital investments.

Safe-Haven Strategy

Since 2022, Tether strategically shifted towards securing its stablecoin with higher-quality assets, such as Treasury bills and gold reserves. In September 2023, the company claimed to be a leading buyer of U.S. Treasury bills, reinforcing its commitment to stability.

Risk Mitigation Success

Addressing concerns about portfolio risk, Tether accumulated $5.4 billion in excess reserves in 2023, surpassing the outstanding $4.8 billion in secured loans. The move aimed to eliminate potential risks associated with secured loans, despite their overcollateralization.

Market Dominance in Crypto Winter

Amidst the crypto winter, Tether emerged as a winner by consolidating its market share in 2023, with USDT tokens representing over 70% of all stablecoins in circulation.

Collaboration with Law Enforcement

In a recent development, Tether announced collaboration with the U.S. Federal Bureau of Investigation to monitor and combat illegal activities. This move underscores the company's commitment to regulatory compliance and security.

In conclusion, Tether's remarkable financial performance, strategic asset management, and collaborations position it as a notable player in the evolving cryptocurrency landscape.