Stablecoin issuer issued its latest attestation report for the fourth quarter of 2022.
The company reported a net profit of $700 million in Q4.
The profit is in addition to the company’s reserves.
Tether publishes its Q4 attestation report
Stablecoin issuer Tether published its latest attestation report on Thursday, February 9th. The company reported a net profit of $700 million in the previous quarter despite the ongoing bear market.
Tether revealed that the profit is in addition to its reserves. While commenting on this latest cryptocurrency news, Tether said;
“Tether’s reserves remain extremely liquid, with the majority of its investments being held in cash, cash equivalents, and other short-term deposits.”
The stablecoin issuer added that the December report was attested by the accounting firm BDO. The report added that Tether’s consolidated assets exceeded its liabilities as of Dec. 31, 2022.
The report comes barely two months after Tether pledged to stop issuing secured loans from its reserves.
The company reported that its consolidated total assets amounted to at least $67.04 billion in the last quarter. Furthermore, its consolidated total liabilities amounted to $66.08 billion. Hence, reflecting excess reserves of at least $960 million.
The net profit is part of shareholder equity
Tether pointed out that the reported profit is part of shareholder equity, that is, what’s in excess of reserves. A company spokesperson added that;
“It’s basically additional capital sitting in the company to further strengthen Tether.”
This is the first time the stablecoin issuer has disclosed its profit figures. The company didn’t reveal how it made its profits.
In a statement, Tether CTO Paolo Ardoino said;
“Tether once again proved its stability in the troubled year of 2022. Not only were we able to smoothly execute over $21 billion dollars in redemptions during the chaotic events of the year, but Tether has, on the other side, issued over $10 billion of USDT, an indication of continued organic growth and adoption of Tether.”
The stablecoin issuer removed commercial paper from its reserves in October 2022. Tether’s other assets include funds, precious metals, and corporate bonds.