Tether Makes $700M Profit in Crypto Turmoil

• Tether announced on Thursday that it generated a $700 million profit last quarter.
• The company said that it had reinvested the profit back into its reserves and ended 2022 with excess reserves of at least $960 million.
• Despite the crypto winter, Tether has proven its stability, resilience and ability to handle bear markets and black swan events.

Tether Reports $700M Profit in Last Quarter

Tether, the issuer of the world’s largest centralized stablecoin USDT, has published its latest attestation report for the fourth quarter of the 2022. The company announced on Thursday that it generated a $700 million profit last quarter and had reinvested the profits back into its reserves. On top of that, Tether said that it ended 2022 with excess reserves of at least $960 million.

Assets Exceed Liabilities

The firm holds $67 billion in assets with liabilities of $66 billion, almost all of which relate to digital tokens issued. Tether also said it has no commercial paper in its reserves. This is indicative of assets exceeding liabilities despite an extremely harsh year for crypto that saw digital asset prices plummet and multiple companies like FTX, Celsius, and Terra Luna bankrupt.

Positive Example Set by Tether

Tether’s Chief Technology Officer Paolo Ardoino explained how this proves how Tether sets itself apart from bad actors in the industry by remaining resilient and stable during stress: „After a tumultuous end to 2022, Tether has once again proven its stability, its resilience and its ability to handle bear markets and black swan events, setting itself apart from the bad actors of the industry.“ He added that they are proud to have been a driving force in rebuilding trust within the crypto industry as well.

USDT Largest Stablecoin

USDT is currently considered to be the largest stablecoin in existence with a market cap exceeding over $68 billion according to CoinGecko data. It is no surprise then that many people have put their trust in this token especially during these difficult times for cryptocurrency markets.

Trust Issues Remain

Despite these impressive results some remain unconvinced as Tether has yet to produce a viable audit of their financials leaving lingering doubts regarding whether or not we can fully trust their attestations or not.