- Tether’s operational profits for Q2 2023 exceeded $1 billion, marking a significant 30% quarter-over-quarter growth.
- The company discloses a $115 million share buyback and asserts a positive net worth with consolidated total assets exceeding consolidated total liabilities.
- CTO of Tether, Paolo Ardoino, emphasizes the company’s unwavering commitment to transparency, setting new standards in the cryptocurrency industry.
The latest attestation report from Tether Holdings Limited, reveals that they aim to maintain transparency and stability. Following an assurance opinion by BDO, a top global accounting firm, Tether has disclosed significant updates to its financial status in the Q2 2023 Consolidated Reserves Report (CRR). The attestation not only reinforces the credibility of the company’s reserves but also introduces new insights into Tether’s financial maneuvering.
The core highlight from the attestation is Tether’s growth in excess reserves by approximately $850 million, bringing the total to an impressive $3.3 billion at the end of Q2 2023. This spike reinforces the stability of Tether, a major player in the cryptocurrency market. For those unfamiliar, excess reserves refer to a company’s own profits not distributed to shareholders and are maintained on top of the 100% reserves backing all outstanding tokens.
This increase in excess reserves underpins Tether’s resilient risk management decisions amidst banking and cryptocurrency industry tribulations. It’s clear that Tether has made it a priority to safeguard its community by securing nearly 4% additional assets within its reserves. Notably, the operational profits for Q2 2023 exceeded $1 billion, marking a substantial 30% quarter-over-quarter growth.
Investments and Exposure
In a promising development, Tether disclosed a $115 million USD share buyback to further strengthen the shareholder group. Additionally, they ventured into energy-related investments financed from the quarter’s profits. It’s important to note that these energy-related initiatives are not considered as part of the eligible reserve for the token in circulation.
A striking revelation in the CRR was Tether’s indirect and direct exposure to US Treasury bills, totaling approximately $72.5 billion. This exposure showcases Tether’s balanced financial portfolio and further consolidates the company’s claim of maintaining liquid reserves, with 85% of investments held in cash and cash equivalents.
As of June 30, 2023, Tether’s consolidated total assets were reported to amount to a whopping $86,499,251,218. In contrast, the group’s total liabilities amounted to $83,200,775,340, out of which $83,178,020,411 is related to digital tokens issued. This difference between assets and liabilities confirms Tether’s positive net worth and financial stability.
A Strong Commitment to Transparency
Paolo Ardoino, CTO of Tether, expressed his pride in the latest reserves attestation, emphasizing Tether’s “unwavering commitment to transparency.” Tether is on a mission to set new standards in the industry, promoting trust and reliability in the global financial ecosystem.
Tether’s financial report for Q2 2023 reveals a promising trajectory, with the company securing substantial profits, boosting its excess reserves, and making strategic investments. By enhancing its transparency through this detailed disclosure, Tether is leading by example, reinforcing its stability, and driving innovation in the industry.
