Tether’s fourth-quarter attestation report has revealed significant profits for the stablecoin issuer, with a substantial portion of the earnings coming from its gold and Bitcoin holdings. The company reported a profit of $2.85 billion for the final quarter of 2023, resulting in an annual profit of $6.2 billion.
The attestation report showed that Tether’s net operational profit from U.S. T-bill interests yielded $1 billion, while $1.85 billion came from its gold and Bitcoin holdings. The company has decided to keep most of its profits within stablecoin reserves to ensure resiliency and has achieved its goal of removing the risk of secured loans from the token reserves.
Tether’s CEO, Paolo Ardoino, expressed optimism for the future, stating, “We look forward to a great 2024, with many new projects and products ready to come alive.” While Tether is well-known for its USDT stablecoin, Ardoino highlighted that the company is expanding into various strategic sectors, including AI, peer-to-peer telecommunications, Bitcoin mining, and renewable energy production.
Currently, Tether’s assets under management stand at $98.5 billion, with $91.6 billion in USDT and $5.4 billion in excess reserves. The company’s market cap has surged from $91.7 billion to $96.2 billion over the past month, and analysts from Matrixport Research expect it to reach $100 billion soon.
Tether’s recent developments, such as publishing its reserves in real-time, have contributed to its success. Additionally, Cantor Fitzgerald CEO Howard Lutnick affirmed that Tether has the assets to back its USDT stablecoin, stating, “From what we’ve seen… they have the money.”
The company is also venturing into new areas, including Bitcoin mining and cooperating with authorities on asset freezes. Tether plans to invest nearly $500 million in the Bitcoin mining industry over the next six months and is building mining facilities in Uruguay, Paraguay, and El Salvador. These facilities will have a capacity ranging between 40 and 70 megawatts.
While Tether’s fourth-quarter profits have been well-received by the crypto community, some have expressed surprise at the rapid turnaround. Critics have compared Tether’s $6.2 billion in net profits with the net income reported by traditional financial institutions like Goldman Sachs. Despite having only 12 employees, Tether outperformed Goldman Sachs, which has 45,300 employees, in terms of net profits.
Tether’s success and potential further adoption, such as through ETFs, could expand its reach beyond the cryptocurrency space. As the company looks forward to a promising 2024, it remains focused on innovation and diversification in various sectors, solidifying its position as a leading stablecoin issuer in the market.
