Tether Reports Record $13 Billion Profit in 2022
Tether, the prominent cryptocurrency company known for issuing the largest stablecoin, USDT, announced on Friday that it achieved an astounding $13 billion in net profits across its operations last year, marking a record-breaking financial performance.
Of this impressive figure, approximately $7 billion came from the firm’s extensive holdings in U.S. Treasuries and repurchase agreements (repos), while another $5 billion stemmed from unrealized gains related to the company’s investments in gold and bitcoin (BTC). Additional investments contributed about $1 billion to the total profit.
According to the latest quarterly attestation, which was validated by the accounting firm BDO Italy, Tether’s stablecoin issuance arms—Tether International Limited and Tether Limited—reported $143.7 billion in assets reserved against $136.6 billion in liabilities. This results in a robust cushion of $7 billion in excess reserves backing its stablecoin offerings. Notably, the reserve of Treasury bills has increased to $94.5 billion.
Moreover, Tether has also raised its bitcoin holdings for the first time since March, now holding nearly 84,000 BTC valued at approximately $7.8 billion as of the end of the year, as detailed in the attestation.
With a market capitalization of around $140 billion, Tether’s USDT remains the fourth-largest cryptocurrency and serves as a critical infrastructure component for digital asset trading. It is increasingly favored in developing regions for various financial activities, including payments, remittances, and savings in U.S. dollars. However, recent regulatory changes, particularly the MiCA regulations in the European Union, have led several exchanges to delist or suspend USDT for EU users, resulting in a noticeable decline in the token’s supply.
In a strategic move, the company has revealed plans to relocate its headquarters to El Salvador, a nation recognized for its bitcoin-friendly policies. Under President Nayib Bukele’s leadership, El Salvador has emerged as a burgeoning hub for cryptocurrency enterprises, attracting significant interest from the global crypto community.
