Tether Q2 2023: $72.5 Billion in US Treasuries Exposure with Profits Over $1 Billion
Tether Holdings Limited, issuer of USDT, has released its assurance opinion for Q2 of 2023, completed by BDO, a top five-ranked global independent public accounting firm. The report reaffirms the accuracy of Tether's Consolidated Reserves Report (CRR) as of June 30, 2023, and provides new insights into the company's financial standing and investment strategies.
Tether's excess reserves have increased by approximately $850 million, reaching a total of $3.3 billion at the end of Q2. Excess reserves are the company's profits that are not distributed to shareholders and are kept on top of the 100% reserves that Tether maintains to back all outstanding tokens.
The CRR reveals Tether's indirect exposure to US Treasuries, including those held by Money Market Funds and those collateralizing its Overnight Repo. The total amount of Treasuries backing Tether's stablecoins is about $72.5 billion.
Tether's operational profits for April to June 2023 are over $1 billion, marking a 30% increase quarter over quarter. The company also disclosed a share buyback amounting to $115 million USD, a sign of consolidation.
Tether has made investments in energy-related initiatives financed from the profits of this quarter. These investments are not included in the CRR as they are not considered by Tether as an eligible reserve for the token in circulation.
Tether's reserves remain highly liquid, with 85% of its investments held in cash and cash equivalents. The CRR and BDO's independent attestation confirm that Tether's consolidated assets exceed its consolidated liabilities, with total assets amounting to at least $86,499,251,218 and total liabilities amounting to $83,200,775,340.
Paolo Ardoino, CTO of Tether, expressed pride in the reserves attestation, stating, “Transparency is not just a buzzword for us; it is the cornerstone of our philosophy. We believe that open communication and strong financials foster trust and reliability, and this is what the global community deserves especially in a year devastated by many failures across the banking and crypto industry."
The latest report from Tether emphasizes the company's commitment to transparency, risk management, and community engagement. By disclosing detailed information about its reserves, investments, and financial strategies, Tether aims to set new standards in the industry and foster trust among its users and stakeholders. The increase in excess reserves, investment in US Treasuries, and focus on energy-related initiatives reflect Tether's strategic approach to maintaining stability and driving innovation in the crypto space.
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