Tether posted a profit of 2.85B in Q4, boosted by T-Bills.

Tether Holdings Ltd., the company behind the stablecoin Tether (USDT), reported a “record-breaking net profit” in the last quarter of 2023, driven by the strong performance of Treasury yields and other assets.

According to Tether's confirmation report on Jan. 31, the company reported net income of $2.85 billion in the fourth quarter of 2023, including up to $1 billion in net interest from U.S. Treasury securities. Gold and BTC reserves contributed to the remaining balance.

According to an analysis from Zippia, Tether employs 125 people, bringing net profit per employee to $22.8 million in the last quarter.

For the year, Tether reported a total net profit of $6.2 billion, with $4 billion coming from US Treasury bonds and other non-crypto investments. Total assets under Tether management include USD 80.3 billion, BTC USD 2.8 billion, gold USD 3.5 billion and venture capital investments USD 1.5 billion.

Treasurys are debt securities issued by the US Treasury Department to finance government spending. The yield on Treasuries is essentially the income investors get for government loans. In December 2023, the yield on the one-year US Treasury bill was 4.7%. Backed by the US government, Treasurys are considered one of the safest investments in the world.

Since 2022, when many crypto companies have seized the sector due to fear of bankruptcy and contagion, Tether has moved to recover high-quality assets such as T-bills and gold stocks. By September 2023, the company said it was one of the world's top buyers of US Treasury bills.

The stablecoin issuer is said to have accumulated more than $5.4 billion in reserves by 2023, covering an unexpected $4.8 billion in collateralized loans, in response to the community's perceived risk to the portfolio.

“Teter is proud to announce that it has achieved its goal of removing collateralized loans from its token inventory, although such collateralized loans are over-represented,” the company said in a statement. BDO Global reviewed Tether's financials.

Tether is seen as one of the winners of the last crypto winter. The company has consolidated its market share by 2023, with USDT tokens representing more than 70% of all stablecoins in circulation.

The company recently announced that the US Federal Bureau of Investigation has entered the arena in a collaborative effort with law enforcement to monitor and control illegal activities.

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