Tether’s profits were significantly lower than the last quarter

Prominent stablecoin issuer Tether released its Q2 2023 assurance opinion today, conducted by BDO, a renowned global independent public accounting firm. The report reaffirms the accuracy of Tether's Consolidated Reserves Report (CRR) as of June 30, 2023, shedding light on the assets held by the company. The CRR offers increased transparency, revealing Tether's indirect exposure to US Treasuries through Money Market Funds, as well as the US Treasuries securing its Overnight Repo. 

Per the attestation report, Tether recorded an increase in excess reserves by approximately $850 million, totaling about $3.3 billion by the end of Q2, bolstering Tether's stability. The profit, however, is less than the $1.5 billion declared in the first quarter.

“As a reminder, excess reserves are the company's own profits - not distributed to shareholders and which the company has decided to keep on top of the 100% reserves that Tether maintains to back all the outstanding tokens,” said Tether. 

In a strategic move amid banking and crypto industry challenges, Tether decided to hold nearly 4% more assets within its reserves, emphasizing risk management and community care.

During the April to June 2023 period, Tether achieved operational profits exceeding $1 billion, showcasing a significant 30% quarterly increase. Additionally, Tether disclosed a share buyback of $115 million, contributing to a stronger shareholder group. The company also invested in energy-related initiatives funded from this quarter's profits, leading to the difference between announced profits and the increased excess reserves.

With a remarkable 85% of its investments held in cash and cash equivalents, Tether's reserves remain highly liquid. The company's commitment to transparency is evident through the disclosure of direct and indirect exposure to US Treasury bills and Overnight Repo collaterals, totaling approximately $72.5 billion.

The BDO independent attestation confirms that Tether's consolidated assets continue to surpass its liabilities. As of June 30, 2023, the Group's consolidated total assets reached at least $86,499,251,218, while consolidated total liabilities amounted to $83,200,775,340, of which $83,178,020,411 were related to digital tokens issued.

Paolo Ardoino, CTO of Tether, expressed immense pride in the latest reserves attestation, reiterating the company's commitment to transparency, trust, and reliability. With a focus on accountability, risk management, and security, Tether aims to set new industry standards and inspire others to follow suit. 

For further details, the assurance opinion and Consolidated Reserves Report are available for review here.

What is Tether:

Tether is the most widely adopted coin in circulation. USDT was the first-ever stablecoin introduced to the market. It is designed to peg its issued coin 1-to-1 with the Dollar. Tether was one of the first stablecoins issued in several blockchains, available on the Tron, ETH, Omni, EOS, Algorand, Solana, and the Binance Smart Chain (BSC) networks. It has received mass adoption as the reserve currency for most traders as it doesn’t fluctuate like typical crypto coins.

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