Tether, the issuer of the stablecoin USDT, reported a record-breaking $2.85 billion profit in the last quarter, nearing a $100 billion market cap.
The profit includes $1 billion from interest on U.S. Treasury and other investments, with the remainder primarily from appreciating assets like Bitcoin and gold.
In 2023, Tether’s net operating profits totaled $6.2 billion, boosted by high U.S. interest rates and its diverse investment portfolio.
Main Points:
- Tether’s USDT stablecoin is approaching a $100 billion market capitalization.
- Last quarter’s profit of $2.85 billion is a record high for the company.
- Significant profit contributions came from interest on U.S. Treasury and reverse repo investments.
- Tether’s diverse investments include Bitcoin, gold, and other assets.
- In 2023, Tether’s net operating profits reached $6.2 billion.
- The company benefits from high U.S. interest rates, enhancing its fixed-income investment returns.
- Tether’s financial health is supported by $5.4 billion in excess reserves.
Additional Info:
Tether’s financial success is largely attributed to its strategic investments and the rising U.S. interest rates.
The company’s flagship token, USDT, has become a cornerstone in the crypto market, now boasting a near $100 billion market cap.
Over $1 billion of Tether’s recent profits came from interest earned on its substantial U.S. Treasury, reverse repo, and money market fund investments.
These investments are crucial in backing the USDT stablecoin.
Additionally, Tether has seen significant returns from its investments in Bitcoin, gold, and other sectors like artificial intelligence and telecommunications.
The company’s financial report for 2023 shows a robust $6.2 billion in net operating profits, with a substantial portion derived from interest on Treasury holdings.
This financial strength is further bolstered by Tether’s $5.4 billion in excess reserves, ensuring a solid backing for its stablecoins.
Howard Lutnick, chairman and CEO of Cantor Fitzgerald, which manages a portion of Tether’s assets, has confidently affirmed the company’s financial integrity, dismissing concerns about the quality of assets backing USDT.
