• Tether reported a net profit of $700 million in the fourth quarter of 2022. This is in addition to its reserves.
• The company published its Q4 attestation report which was attested by the accounting firm BDO.
• Tether’s consolidated assets exceeded its liabilities as of Dec. 31, 2022, with excess reserves of at least $960 million.
Tether Reports Net Profit for Q4 2022
Stablecoin issuer Tether released its latest attestation report for the fourth quarter of 2022 on Thursday, February 9th, revealing a net profit of $700 million in the previous quarter despite the ongoing bear market. This profit is in addition to their reserves and was attested by accounting firm BDO.
Consolidated Assets Exceed Liabilities
The report revealed that Tether’s consolidated total assets amounted to at least $67.04 billion while their consolidated total liabilities amounted to $66.08 billion as of December 31st, 2022 – reflecting excess reserves of at least $960 million. The company also stated that their reserves remain extremely liquid, with most investments being held in cash, cash equivalents and other short-term deposits.
Profit Part Of Shareholder Equity
Tether pointed out that this reported profit is part of their shareholder equity – what’s in excess of their reserves – and added that it is essentially additional capital sitting in the company to further strengthen it. This marks the first time that Tether has disclosed its profit figures publicly without revealing how they made them however CTO Paolo Ardoino commented; „Tether once again proved its stability…“
Company Ceases Loan Issuance From Reserves
This news comes barely two months after Tether pledged to stop issuing secured loans from their reserves and instead focus on organic growth and adoption via USDT issuance exceeding over $10 billion throughout 2022 according to Ardoino’s statement above.
Conclusion
Overall, this report signals positive news for Tether both financially and adoption wise – proving itself stable during a bear market period while still growing organically via USDT issuance despite halting loan issuance from reserves altogether.