Record $2.85B Profit in Q4: Tether’s Success Driven by T-Bills

Tether Holdings Limited, the company responsible for the stablecoin Tether, has reported a “record-breaking net profit” in the final quarter of 2023. This success was fueled by interest from Treasury securities and strong performance from other assets. The company’s attestation report from January 31 revealed a net profit of $2.85 billion in Q4 2023, with $1 billion coming from net interest in U.S. Treasury securities. The remaining balance was contributed by gold and Bitcoin reserves. Analysis from Zippia shows that Tether currently employs 125 people, resulting in a net profit of $22.8 million per employee for the last quarter.

Over the course of the year, Tether disclosed a total net profit of $6.2 billion. Out of this, $4 billion was generated by U.S. Treasury bonds and other non-crypto investments. Tether’s total assets under management include $80.3 billion in U.S. Treasurys, $2.8 billion in Bitcoin, $3.5 billion in gold, and $1.5 billion in venture capital investments. U.S. Treasurys are debt securities issued by the U.S. Department of the Treasury for government spending. The yield on a Treasury represents the return received by investors for lending money to the government. These securities are considered one of the safest investments worldwide.

In response to the bankruptcy filings of several crypto firms in 2022 and concerns regarding portfolio risk, Tether shifted its stablecoin to be backed by higher-quality assets like T-bills and gold reserves. The company claimed to be one of the top buyers of U.S. Treasury bills in September 2023. In that year, Tether accumulated $5.4 billion in excess reserves to cover outstanding secured loans totaling $4.8 billion. BDO Global reviewed Tether’s financials, positioning the company as one of the winners of the recent crypto winter.

Tether managed to solidify its market share in 2023, with USDT tokens accounting for over 70% of all stablecoins in circulation. To strengthen efforts against illegal activities, Tether recently collaborated with law enforcement, including onboarding the U.S. Federal Bureau of Investigation (FBI) to its platform. This partnership aims to monitor and prevent unlawful activities within the crypto space. Tether’s impressive financial performance and strategic initiatives have established its position as a major player in the cryptocurrency market.