• 17 July, 2024
News

Tether Reports Strong Q4 2022 Results with $700 Million Profit

The leading stablecoin issuer, Tether, has received validation of its reserves from top accounting firm BDO through an assurance opinion. The opinion confirms the accuracy of Tether’s consolidated reserves report as of December 31, 2022. 

Tether has also announced that they no longer own any commercial paper and have achieved its goal of getting rid of this type of short-term debt. Additionally, the company reported a profit of $700 million in the fourth quarter.

According to the CRR, Tether’s consolidated assets are at least $67 billion, exceeding its consolidated liabilities of $66 billion, with excess reserves of at least $960 million. In addition to reducing its secured loans as committed, the report shows that Tether had no commercial paper at the end of 2022.

Tether and Bitfinex’s chief technology officer, Paolo Ardoino, took to Twitter on Thursday to highlight Tether’s “impressive resilience” to market black swan events that hit a number of crypto companies during the 2022 bear market.

Gabor Gurbacs, a strategist at Vaneck/MVIS, stated in a tweet that Tether’s influence and investment in Bitcoin and stablecoin technologies continue to expand. The company’s track record of prioritising customer satisfaction, dependability, and financial success is a stronger indicator of its capabilities than media reports. “So congratulations to the Tether team. Very well done!” he added.

Following the collapse of algorithmic stablecoin terraUSD (UST), which had a market capitalisation of $18 billion prior to its demise, stablecoin issuers came under increased scrutiny last year.

Tether first disclosed a breakdown of its reserves in May 2021, revealing that commercial paper accounted for 49% of its assets. Following attestation reports, the proportion of commercial paper on Tether’s books gradually decreased.

A U.S. judge in New York ordered the company to produce records relating to USDT’s backing in September as part of a lawsuit alleging Tether conspired to issue the stablecoin as part of a campaign to inflate the price of bitcoin (BTC).

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