Tether issued its 2023 Second Quarter attestation report, revealing a net profit of $850M and over $1B of operational profits.
Tether Excess Reserves Reach $3.3B Despite a Dip in the Quarterly Net Profit
On Monday, July 31, the top stablecoin issuer Tether Holdings Limited issued its new quarterly attestation report. The assurance opinion for Q2 of 2023 was completed by BDO, a global independent accounting firm. The attestation re-affirms the accuracy of Tether’s Consolidated Reserves Report (CRR), providing a detailed breakdown of the Group’s assets as of June 30, 2023.
According to the report, a surplus of $850 million in net profit brought the company’s total excess reserves to the all-time-high of $3.3 billion at the end of Q2. However, the increase itself is almost twice lower compared to the previous quarter’s net profit which was reported to be around $1.5 billion.
Tether reminded that its excess reserves are the company’s own profits and not distributed to shareholders. These reserves are kept in addition to the 100% reserves that “Tether maintains to back all the outstanding tokens”.
It was also revealed that during the period of April 2023 to June 2023, Tether’s operational profits exceeded $1B, showing once again a 30% growth. Meanwhile, the company’s share buyback amounted to 115M USD, the sum aimed at strengthening the shareholder group. As for Tether’s reserves, they continue to be extremely liquid, with around 85% of investments held in cash or cash equivalents.
Both Tether’s CRR and the BDO attestation confirm that Tether’s consolidated assets once more surpass its consolidated liabilities. The Management of the Company reported that as of June 30, 2023:
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“The Group’s consolidated total assets amount to at least US$ 86,499,251,218.
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The Group’s consolidated total liabilities amount to US$ 83,200,775,340 of which US$ 83,178,020,411 relate to digital tokens issued.
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The Group’s consolidated assets exceed its consolidated liabilities.”
USDT Market Cap Approaches $84B Mark, Its New ATH
Tether’s USDT remains to be the top stablecoin on the crypto market. According to CoinMarketCap, USDT is now the third largest coin by market capitalization, following Bitcoin and Ethereum.
This month, USDT’s market cap reached the new high of $84 billion which the coin last approached in May of 2022. It is a large increase since the beginning of the year when the coin’s market cap number stood at only $66 billion.
Paolo Ardoino, CTO of Tether, commented on the attestation report, “Transparency is not just a buzzword for us; it is the cornerstone of our philosophy… With a firm focus on transparency, we aim to shape a future where every participant in the global financial ecosystem can confidently navigate a realm built on trust and innovation. That’s why in this quarter, Tether’s USD₮ token in circulation surpassed its previous all-time high.”
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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