Tether's Excess Reserves have increased to record levels

Tether's Excess Reserves have increased to record levels

By the end of October-December, Tether's net profit amounted to a record $2.9 billion. The company's excess reserves have also set a new high, according to the firm's latest report.

Of the reported amount of $2.9 billion, about $1 billion is accounted for by net operating profit, which is mainly provided by interest from U.S. Treasury bonds. The remaining amount is the growth of gold and bitcoin (BTC) reserves.

Excess reserves, according to the report, increased by $2.2 billion in three months and reached $5.4 billion.

Tether has invested another $640 million in various projects, including mining, artificial intelligence (AI), P2P communications, and more. The company does not include these funds in its reserves.

In the context of the entire 2023, the issuer's net profit reached $6.2 billion due to the issue of USDT. Tether's total assets under management (AuM) include:

  • $80.3 billion in bonds;
  • $2.8 billion in BTC;
  • $3.5 billion in gold;
  • $1.5 billion in venture capital investments.

As of December 31, the firm's consolidated reserves amounted to at least $97 billion, and consolidated liabilities amounted to $91 billion. In case Tether is suddenly hacked and all funds are stolen, it will be able to refund them to users.

Source: beincrypto

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