Tether (USDT), the king of all stablecoins, is printing money.
According to its latest attestation report, the company raked in a record $2.9 billion net profit in Q4 2023, thanks to booming interest from treasuries and the appreciation of their bitcoin and gold holdings. Q4’s windfall also allowed Tether to accumulate enough excess reserves to cover the entirety of their risky secured loans, easing some community concerns.
Key Details
Net profit soared to $2.9 billion in Q4, accounting for nearly half of Tether's $6.2 billion net profit for all of 2023.
Excess equity: The profit increased Tether's excess reserves by $2.2 billion to a total of $5.4 billion.
Excess equity > remaining secured loans: With only $4.8 billion in outstanding secured loans at the end of 2023, Tether can now claim they are “widely overcollateralized” from highly liquid assets.
Hoarding BTC: Tether also acquired an additional 8,888 bitcoins in Q4, increasing its total holdings to about 66,465 (worth ~$2.8 billion).
T-bill & chill: The company’s total exposure to US Treasury’s now stands at $80.3 billion, or about 83% of its total assets.
Crazy Stats
Tether's net profits are now 10% of JPMorgan's.
Tether has ~50 employees, and JPM has 250,000.
— #Ryan Selkis (d/acc) 🇺🇸 (#@twobitidiot)
2:55 PM • Jan 31, 2024
Tether made more money last quarter than Goldman Sachs.
Tether: $2.85 billion
Goldman: $2.01 billion— #Matt Hougan (#@Matt_Hougan)
9:06 PM • Jan 31, 2024
Tether likely does more than $100 million in profit per employee.
That is insane 🤯
— #Pomp 🌪 (#@APompliano)
3:00 PM • Feb 1, 2024
The king of stables: Since Tether’s last assurance, the company’s market cap has grown by ~$8 billion. Meanwhile, their largest competitor, Circle’s, market cap has fallen by more than $300 million.
