• Tether reported a net profit of $700 million in Q4 2022.
• The profit is in addition to the company’s reserves and was attested by BDO.
• Tether’s consolidated assets exceeded its liabilities as of Dec. 31, 2022.
Tether Reports $700 Million Net Profit in Q4 2022
Stablecoin issuer Tether published its latest attestation report on Thursday, February 9th, revealing a net profit of $700 million in the fourth quarter of 2022. This amount is in addition to the company’s reserves and was attested by accounting firm BDO.
Consolidated Assets Exceed Liabilities
The report stated that Tether’s consolidated assets exceeded its liabilities as of December 31, 2022, with total assets amounting to at least $67.04 billion and total liabilities amounting to $66.08 billion. This reflects excess reserves of at least $960 million and is part of shareholder equity – that which is over and above reserves.
Profit Part Of Shareholder Equity
Tether CTO Paolo Ardoino commented that; “It’s basically additional capital sitting in the company to further strengthen Tether.“ As such, the reported profit forms part of shareholder equity – i.e what is left after reserves are taken into account – rather than being taken from them directly.
$21 Billion Redemptions
The stablecoin issuer also revealed that it had smoothly executed over $21 billion dollars in redemptions during the tumultuous events of last year – an indication for continued organic growth and adoption for Tether’s services globally.
Removal Of Commercial Paper From Reserves
In October 2021, just two months before releasing this report, Tether pledged to stop issuing secured loans from its reserves – a step towards further strengthening transparency for their platform going forward.