Tether Q4 Report: How It Surpassed Community Expectations

Tether boasts record profits and 90% cash backing in Q4, surpassing concerns with complete removal of secured loans.

Two robots analysing Tether progress.
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  • According to their report, Tether has achieved a record-breaking net profit in Q4 of 2023.
  • Tether has invested millions in sustainable energy, Bitcoin mining, and tech advancements.
  • Renowned auditor BDO has confirmed Tether’s financial strength and commitment to clear reporting.

Tether Holdings Limited (BVI) released its Q4 2023 report, revealing a strong financial performance and strategic progress. The company achieved a record-breaking net profit of $2.85 billion in the quarter. This strong financial performance contributed to a net profit of $6.2 billion for 2023.

Tether Achieves 90% Cash Backing

However, the most significant development was the complete removal of secured loans from the token reserves, a major concern for the community. Tether achieved this by accumulating $5.4 billion in excess reserves, fully covering the $4.8 billion outstanding secured loans.

Furthermore, Tether continues to prioritize liquidity by issuing tokens backed by Cash and Cash Equivalent at an impressive 90%. Beyond its core business, Tether is also expanding its horizons with strategic investments in various sectors. The company invested $642 million in Q4 2023, bringing the total for the year to $1.45 billion. 

These investments focus on sustainable energy, Bitcoin mining, data infrastructure, AI, and P2P telecommunications technology, showcasing Tether’s commitment to a more sustainable and inclusive financial future.

Tether Report Key Highlights

The report, conducted by the global auditor BDO, revealed robust financial performance and a continued focus on transparency within the stablecoin ecosystem. Here is a summary of the most important points discussed in the report:

  • Record-breaking net profit of $2.85 billion in Q4 2023, driven by interest from US Treasuries and asset appreciation.
  • Excess reserves reach $5.4 billion, fully covering outstanding secured loans and addressing community concerns.
  • Net profit for 2023 will reach $6.2 billion, with US treasuries and other investments contributing significantly.
  • Tether tokens backed by Cash and Cash Equivalent at 90%, prioritizing liquidity in the stablecoin market.
  • Investments in sustainable energy, Bitcoin mining, data, AI, and P2P telecommunications reach $642 million.

Paolo Ardoino, CEO of Tether, emphasized the company’s core values: “Tether’s Q4 attestation underscores our commitment to transparency, stability, and responsible financial management.” He further highlighted the achievement of high cash equivalent backing and substantial profits, reflecting financial strength and a vision for the future.

On the Flipside

  • While Tether reports high cash backing, the exact composition of their reserves beyond “Cash and Cash Equivalents” remains unclear.
  • Tether’s profits primarily stem from interest on US Treasuries. Some view this reliance on traditional finance as contradictory to their claim of disrupting the financial system.
  • The audit by BDO provides assurance, but some argue for a truly independent audit by a financial regulator for complete trust.

Why This Matters

Tether’s Q4 report has addressed many key community concerns. With full cash backing, record profits, and strategic investments in sustainable energy and Bitcoin mining, this transparency and financial strength could bolster trust in the stablecoin market and impact the broader crypto landscape.

If you’re interested in learning more about Tether’s financial performance in 2023, including its Q4 profits, USDT reserves, and controversies, you can dive deeper here:
Tether Profits at All-Time High, USDT Reserves Hit $5.4B

Curious about Tether’s recent acquisition of $380 million in Bitcoin and its potential impact on the cryptocurrency market? Read the full article here:
Tether Adds $380 Million to Its $2.42 Billion Stash

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Kyle Calvert

Kyle Calvert is a cryptocurrency news reporter for DailyCoin, specializing in Ripple, stablecoins, as well as price and market analysis news. Before his current role, Kyle worked as a student researcher in the cryptocurrency industry, gaining an understanding of how digital currencies work, their potential uses, and their impact on the economy and society. He completed his Masters and Honors degrees in Blockchain Technology within Esports and Business and Event management within Esports at Staffordshire University.