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- Tether’s fourth quarter certification supports its financial strength with record earnings and historic excess reserves.
- Tether removes secured lending risk from its token reserves, addressing community concerns.
Tether Holdings Limited (BVI) has published its Consolidated Reserves Report (CRR) for the fourth quarter of 2023, audited by the prestigious independent audit firm BDO. This report provides a detailed view of the Tether Group’s assets as of December 31, 2023 and supports the accuracy of its CRR.
Record Net Earnings
The fourth quarter of last year saw record net earnings for Tether, reaching $2.85 billion. Of this amount, approximately $1 billion was from net operating earnings, primarily generated from interest on U.S. Treasury Bonds, while the remainder came from appreciation in Gold and Bitcoin reserves.
Paolo Ardoino, CEO of Tether, stresses the importance of the fourth quarter certification, highlighting their commitment to transparency and financial stability. He mentions that they have achieved high levels of cash reserves, demonstrating their focus on liquidity and stability .
Historical Surplus Reserves
Surplus reserves also experienced a historical increase of $2.2 billion, totaling $5.4 billion. These surpluses were allocated to various strategic projects, such as mining, AI infrastructure and P2P telecommunications, among others, and will remain outside the consolidated reserves report , ensuring that they do not affect token reserves.
Elimination of Secured Lending Risk
Tether announces the elimination of secured lending risk from token reserves. Althoughthese loans have extensive overcollateralization, Tether has accumulated sufficient excess reserves to fully cover the exposure, addressing previous community concerns.
Net Earnings for 2023
Tether Group reports net earnings for 2023 totaling $6.2 billion. Of this amount, approximately $4 billion is from net operating earnings generated by U.S. Treasury Bonds, Reverse Repo and money market funds, with the remainder coming from the performance of other asset classes.
Asset Diversification
Tether continues to experience positive contributions from various asset classes, with a particular focus on Gold, Bitcoin and other investments. The Group has reached record highs in both direct and indirect ownership of U.S. Treasury Bonds, with total exposure of $80.3 billion.
Financial Strength
The Consolidated Reserves Report (CRR) confirms Tether’s strong financial position, with consolidated assets exceeding consolidated liabilities. As of December 31, 2023, the Group’s consolidated total assets amount to at least $97,020,394,556, while consolidated total liabilities stand at $91,597,732,663, of which $91,572,956,801 relates to issued digital tokens.
Commitment to a Stable Financial Future
The Tether Group does not consider investments made in sustainable energy, Bitcoin mining, data, AI infrastructure, P2P telecommunications technology and other long-term proprietary investments as part of its reserves to back the issued token. During Q4 2023, investments in these fields amounted to USD 642’551’135 (USD 1’452’205’608 since the beginning of the year).
Tether’s fourth quarter certification reinforces its commitment to transparency and financial stability. Its focus on maintaining strong cash reserves ensures the liquidity and stability of the currency. Impressive net earnings throughout the year and investments in responsible and technological projects underscore its financial strength and forward-looking approach to finance.
