Tether Holdings Limited (BVI) has published its assurance opinion for the fourth quarter of 2023, conducted by the globally recognized independent auditing firm, BDO. This attestation reaffirms the accuracy of Tether’s Consolidated Reserves Report (CRR) and provides a comprehensive breakdown of the assets held by the Group as of December 31, 2023.
CEO Paolo Ardoino emphasized, “Tether’s Q4 attestation underscores our commitment to transparency, stability, and responsible financial management. Achieving the highest percentage of reserves in Cash and Cash Equivalents reflects our dedication to liquidity and stability. The substantial net profits generated not only in the last quarter of the year but throughout the year, amounting to $6.2 billion, showcases our financial strength. Furthermore, our investments in sustainable energy, Bitcoin mining, data, AI infrastructure, and P2P telecommunications technology illustrate our commitment to a more sustainable and inclusive financial future.”
In terms of financial performance, the fourth quarter marked a historic net profit of $2.85 billion. Approximately $1 billion of this profit originated from net operating profits, primarily interests from US Treasuries, with the remaining derived mainly from the appreciation of Gold and Bitcoin reserves. The excess reserves reached an unprecedented high, increasing by $2.2 billion to a total of $5.4 billion. An additional $640 million was invested in various strategic projects, segregated under a new VC umbrella to ensure these investments do not impact token reserves.
At year-end, secured loans, collateralized by highly liquid assets and confirmed in the BDO attestation, were fully covered by undistributed accumulated profits, known as excess reserves ($4.8 billion in secured loans versus $5.4 billion in excess reserves).
Tether proudly announced the achievement of its goal to eliminate the risk of secured loans from token reserves. Despite being overcollateralized, Tether accumulated sufficient excess reserves to cover the entire exposure, addressing community concerns about this portfolio segment.
The Group’s net profit for 2023 stands at $6.2 billion, with approximately $4 billion generated from net operating profits related to US Treasuries, Reverse Repo, and Money market funds, and the remainder from the performance of other asset classes.
Positive contributions from various asset classes, particularly in Gold, Bitcoin, and other investments, led the Group to attain new record highs in both direct and indirect ownership of US Treasuries, amounting to $80.3 billion exposure.
Maintaining transparency and stability, Tether issued tokens backed by Cash and Cash Equivalent at an impressive 90%, emphasizing its commitment to liquidity within the stablecoin ecosystem.
The Consolidated Reserves Report (CRR) reiterates Tether’s robust financial position, with consolidated assets surpassing consolidated liabilities. As of December 31, 2023, the Group’s consolidated total assets amount to at least US$ 97,020,394,556, while consolidated total liabilities stand at US$ 91,597,732,663, of which US$ 91,572,956,801 relate to digital tokens issued.
Tether Group clarified that a portion of its reserves backing the issued token is invested in sustainable energy, Bitcoin mining, data, AI infrastructure, P2P telecommunications technology, and other long-term proprietary investments. Investments in these fields during Q4 2023 reached US$ 642,551,135 (USD 1,452,205,608 since the beginning of the year).
