Tether Achieves Record $2.85 Billion Profit in Q4, Fueled by Treasury Investments

Tether Holdings Limited, the stablecoin issuer, reports unprecedented net profit in Q4 2023, propelled by robust earnings from U.S. Treasury securities.

Tether Holdings Limited, the entity behind the renowned stablecoin Tether, has achieved a historic net profit in the final quarter of 2023, primarily driven by substantial returns from U.S. Treasury securities and strong performance in other assets.

As disclosed in Tether's attestation report on January 31, the company marked a net profit of $2.85 billion in Q4 2023, with a notable $1 billion attributed to net interest from United States Treasury securities. The remaining balance saw contributions from gold and Bitcoin reserves.

A comprehensive analysis by Zippia reveals that Tether employs 125 individuals, resulting in an impressive net profit per employee of $22.8 million for the last quarter.

For the entire year, Tether disclosed an aggregate net profit of $6.2 billion, with $4 billion generated from U.S. Treasury bonds and various non-crypto investments. Tether's total assets under management encompass $80.3 billion in U.S. Treasurys, $2.8 billion in BTC, $3.5 billion in gold, and $1.5 billion in venture capital investments.

U.S. Treasurys, being debt securities issued by the U.S. Department of the Treasury, serve as a vital component of Tether's investment strategy. These securities, considered among the safest global investments, yielded returns, with the one-year U.S. Treasury bill registering a 4.7% yield in December 2023.

Since 2022, amid industry turmoil and heightened concerns, Tether strategically shifted towards backing its stablecoin with high-quality assets, including T-bills and gold reserves. By September 2023, Tether claimed a position among the leading global buyers of U.S. Treasury bills.

In response to community apprehensions about portfolio risk, Tether reportedly amassed $5.4 billion in excess reserves in 2023, covering the outstanding $4.8 billion in secured loans. This move was aimed at eliminating the perceived risk associated with secured loans from the token reserves, a statement affirmed by BDO Global's review of Tether's financials.

Tether emerges as a prominent player in the aftermath of the crypto winter, consolidating its market share in 2023 with USDT tokens representing over 70% of all stablecoins in circulation.

Notably, the company has recently announced collaboration with the U.S. Federal Bureau of Investigation, aligning efforts to enhance monitoring and curb illicit activities on its platform.

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