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Tether’s Record-Breaking Year: $13 Billion in Profits and Increased Bitcoin Holdings
Record-Breaking Profits
Tether, the company behind the largest stablecoin USDT, announced on Friday that it generated a record-breaking $13 billion in net profits last year.
Breakdown of Profits
Some $7 billion of the profits came from the firm’s vast U.S. Treasuries and repo holdings, while $5 billion was derived from the unrealized appreciation of the company’s gold and bitcoin (BTC) holdings. Other investments contributed $1 billion to the total profits.
Stablecoin Reserves
According to the company’s latest quarterly attestation signed by accounting firm BDO Italy, the group’s stablecoin issuer arms Tether International Limited and Tether Limited disclosed $143.7 billion in assets in reserve against $136.6 billion in liabilities, resulting in $7 billion of excess reserves backing its stablecoins.
Increase in Bitcoin Holdings
The group also increased its bitcoin holdings last quarter for the first time since March, holding nearly 84,000 BTC worth approximately $7.8 billion as of the end of the year, according to the attestation.
USDT’s Growing Popularity
USDT, the fourth-largest cryptocurrency with a market capitalization of $140 billion, is increasingly being used as a key piece of infrastructure for digital asset trading and is popular in developing regions for payments, remittances, and savings in U.S. dollars.
Recent Developments
Despite its growing popularity, several exchanges have delisted or announced to suspend USDT for EU users due to MiCA regulations, leading to a decrease in the token’s supply.
Future Plans
Tether has announced plans to move its headquarters to El Salvador, the bitcoin-friendly nation state in Central America that has become an emerging hub for crypto firms under President Nayib Bukele’s leadership.
Conclusion
Tether’s record-breaking profits and increased bitcoin holdings are a testament to the company’s continued growth and success in the digital asset market. As the largest stablecoin issuer, USDT is playing an increasingly important role in the cryptocurrency ecosystem, and its popularity is expected to continue to grow in the coming years.
FAQs
What is Tether?
Tether is the largest stablecoin issuer, with a market capitalization of $140 billion.
What is USDT?
USDT is Tether’s largest stablecoin, pegged to the U.S. dollar and traded on various cryptocurrency exchanges.
What are Tether’s plans for the future?
Tether has announced plans to move its headquarters to El Salvador, a bitcoin-friendly nation state in Central America.
What is MiCA regulation?
MiCA (Markets in Crypto-Assets) is a European regulation aimed at regulating the cryptocurrency market in the European Union.
Why has Tether’s USDT supply decreased?
Several exchanges have delisted or announced to suspend USDT for EU users due to MiCA regulations, leading to a decrease in the token’s supply.
