Coinspeaker
Tether Adds $850M to Excess Reserve after Reporting Operational Profit of Over $1B in 2023 Q2
Tether Limited Inc, a sister crypto company to Bitfinex digital asset exchange owned by iFinex Inc, announced its Q2 2023 financial results on July 31. According to the company’s financial results compiled by BDO accounting firm, Tether with its array of financial products – including USD₮, EUR₮, CNH₮, XAU₮, and MXN₮ – recorded operational profits of more than $1 billion during the second quarter of 2023, which ended on June. As a result, the company’s profit quarter over quarter increased by about 30 percent.
Further Notes on Tether Q2 2023 Earnings
Tether announced that it further reinforced its market stability with an increase in its excess reserves of about $850 million during the second quarter, thus bringing its total excess reserves to approximately $3.3 billion. The company also disclosed a share buyback of about $115 during the second quarter in a bid to strengthen its shareholders. Tether also announced that part of its profits went to other investments including energy-related initiatives to help diversify its revenue collection.
Notably, the investment in energy-related initiatives is not included in the Consolidated Reserves Report (CRR) as they are not considered eligible reserves for the tokens in circulation. With an additional 4 percent in its assets reserves, the company noted that its consolidated total assets during the second quarter amounted to at least $86,499,251,218. On the other hand, the company’s consolidated total liabilities during the second quarter amounted to $83,200,775,340, with $ 83,178,020,411 relating to digital tokens already issued.
Paolo Ardoino, CTO of Tether, highlighted that the company will continue to provide transparency in its digital assets issuance to enhance mainstream adoption.
“… 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,” Ardoino noted.
Meanwhile, Tether disclosed that it held about $3.27 billion worth of precious metals and approximately $1.6 billion in Bitcoins. Additionally, the company highlighted that it has a secured loan of about $5.5 billion and miscellaneous investments worth approximately $2.36 billion.
Bigger Picture
Amid the crypto regulatory crackdown in the United States led by the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), Tether has managed to maneuver its way through future growth success. According to the latest crypto market data, Tether’s USDT led in daily traded volume of about $18 billion with Bitcoin following at around $10 billion. Tether is expected to remain a major cryptocurrency player as more institutional investors proliferate the nascent technology geared towards revolutionizing the financial markets.
Tether Adds $850M to Excess Reserve after Reporting Operational Profit of Over $1B in 2023 Q2
