Tether posts $1.48 billion in net profit in Q1

The issuer of the stablecoin USDT, Tether Limited, for the January–March period recorded net profit of $1.48 billion — a figure twice that of the prior period.

Tether’s Latest Q1 2023 Assurance Report Shows Reserves Surplus At All-Time High of $2.44B, up $1.48B in Net Profit; New Categories for Additional Transparency Reveals #Bitcoin and #Gold Allocationshttps://t.co/G7QWB2VXqd pic.twitter.com/xUwOf4n1o7

— Tether (@Tether_to) May 10, 2023

The figure was twice as high as expectations , according to the company’s CTO Paolo Ardoino.

In the fourth quarter of 2022 net profit $700 million.

The accuracy of the figures in the document was confirmed by auditor BDO.

The profit added to the company’s equity.

As of March 31, 2023, the company’s assets reached $81.8 billion, liabilities — $79.4 billion, and equity — $2.44 billion. The latter figure was $960 million at the end of 2022.

“Another excellent quarter for Tether on several fronts. Net profit of $1.48 billion, reserve fortification and a 20% increase in the number of tokens in circulation. The latter is a sign of customer trust, enabling the company to look to the future with greater optimism,” the document states.

In the assurance report, the company for the first time included additional categories in the reserve data.

Tether Limited disclosed that it holds bitcoins valued at $1.5 billion and physical gold in the form of bars — $3.39 billion. They represent 1.8% and 4.1% of total reserves, respectively.

The largest share of USDT collateral (84.7%) is held in cash, cash equivalents and short-term deposits.

The structure is as follows:

• US Treasury bills — 76.15%;
• bills of other governments — 0.07%;
• операции РЕПО overnight— 10.8%;
• term REPO operations — 1.1%;
• money market funds — 10.7%;
• deposits in commercial banks — 0.7%.

“Tether is working to reduce reliance on deposits as a source of liquidity, considering the repo market as an additional measure to uphold high standards of user protection,” the report explains.

Earlier, Tether conducted an analysis of The Wall Street Journal articles and accused the publication of biased coverage against the company.

In February 2023, the media reported the placement of USDT reserves at Cantor Fitzgerald and Capital Union.