Tether Reports $850M Profit in Q2, Reserves Reach $3.3B
• Tether, the issuer of the USDT stablecoin, reported a profit of $850 million in Q2 2023.
• Its total amount of excess reserves amounted to $3.3 billion, with treasuries worth $72.5 billion backing the USDT stablecoin.
• The company’s operational profits exceeded $1 billion in Q2 2023 and its shareholders will conduct a $115 million share buyback to “strengthen” the company.
Tether Reports Profit Worth $850 Million
USDT stablecoin issuer Tether has reported a profit of $850 million in Q2 2023, taking its total amount of excess reserves to $3.3 billion. The report also revealed treasuries worth $72.5 billion backing the USDT stablecoin.
Operational Profits Exceeded 1 Billion
The company’s operational profits exceeded $1 billion in Q2 2023, marking a 30% increase quarter over quarter. Moreover, 85% of its investments were kept in cash and cash equivalents while it was indirectly exposed to U.S Treasury Bills through money market funds and Treasuries collateralizing Overnight Repo deals for dealers in government securities.
Share Buyback Strengthens Company
Tether’s shareholders will conduct a $115 million share buyback to “strengthen” the company as well as invest some profits from Q2 into energy-related initiatives that do not qualify as an appropriate reserve for circulating tokens yet are still invested into long-term projects for sustainability purposes.
CTO Remarks on Commitment to Transparency
Speaking about the attestation report that was prepared by BDO Belgium firm, Tether CTO Paolo Ardoino said he was “immensely proud” of their commitment to transparency and that they aim to set new standards in industry with this move and encourage others to follow suit as well.
World’s Largest Stablecoin
USDT is currently the world’s largest stablecoin with massive growth during 2020, recording an increase from 2 billion coins at the start of 2020 to 15 billion coins by December 2020 despite all odds due its immense popularity among traders and investors alike looking for safe havens amid volatile markets like crypto markets or stocks/forex markets alike..