Tether Reports $700 Million Net Profit in Q4 2022
- Stablecoin issuer Tether published its latest attestation report, revealing a net profit of $700 million in the fourth quarter of 2022.
- The reported profit is in addition to the company’s reserves and was attested by accounting firm BDO.
- The company removed commercial paper from its reserves and CTO Paolo Ardoino noted that Tether has issued over $10 billion USDT.
Net Profit Stands at $700 Million
Stablecoin issuer Tether published an attestation report on February 9th, revealing a net profit of $700 million for the fourth quarter of 2022. The reported profit is in addition to the company’s reserves and was attested by accounting firm BDO. Consolidated total assets amounted to at least $67.04 billion while consolidated total liabilities amounted to $66.08 billion, resulting in excess reserves of at least $960 million. The net profit forms part of shareholder equity, which is what’s left after subtracting reserves from profits.
Company Removes Commercial Paper from Reserves
Following their announcement, Tether also stated that they had removed commercial paper from their reserves. This is not the first time that Tether has disclosed their profits; however it does mark the first time that they have released figures for their profits as well as how they made them. In a statement about this news, Tether Chief Technical Officer (CTO) Paolo Ardoino said: “Tether once again proved its stability in the troubled year of 2022” adding that “Tether has issued over 10 billion USDT, an indication of continued organic growth and adoption of Tether”.
Significance for Crypto Industry
This news serves as evidence for many within and outside the cryptocurrency industry about how stablecoins can be used to generate returns during times when other assets may not perform so well. It also highlights how far stablecoins have come since their launch and shows further signs of mainstream adoption within traditional financial markets and institutions due to their reliability during uncertain times such as these.