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Tether reported an all-time-high increase in USDT’s excess reserves and recorded net profits in the last quarter of 2023.&nbsp;
According to a Q4 attestation, stablecoin operator Tether (<a href="https://crypto.news/price/tether/" target="_blank" rel="noopener noreferrer nofollow">USDT</a>) made $2.8 billion in net profits from price appreciations tied to its Bitcoin (<a href="https://crypto.news/price/bitcoin/" target="_blank" rel="noopener noreferrer nofollow">BTC</a>) and gold reserves. U.S. Treasury bills secured the digital payments firm $1 billion in net operation profits, lifting excess reserves to $5.4 billion.&nbsp;
This marked a $2.2 billion increase from the previous quarter. Some of this profit was put to work funding <a href="https://crypto.news/tether-to-become-a-bitcoin-miner-with-a-500m-investment-in-2024/" target="_blank" rel="noopener noreferrer nofollow">BTC mining</a>, AI development, P2P communications, and other project investment endeavors.&nbsp;
BDO, Tether’s chosen audit provider, <a href="https://tether.to/en/tethers-2023-q4-attestation/" target="_blank" rel="noopener noreferrer nofollow">attested</a> the firm’s excess reserves fully covered its $4.8 billion in outstanding unsecured loans, which partly back its USDT stablecoin. The firm generated a net profit of $6.2 billion for the whole of last year.
<blockquote class="wp-block-quote">
 Tether’s Q4 attestation underscores our commitment to transparency, stability, and responsible financial management. Achieving the highest percentage of reserves in Cash and Cash Equivalents reflects our dedication to liquidity and stability. <cite>Paolo Ardoino, Tether CEO</cite>
</blockquote>
You might also like: <a href="https://crypto.news/cantor-fitzgerald-ceo-confirms-tethers-legitimate-86b-assets/" rel="noopener noreferrer nofollow"> Cantor Fitzgerald CEO confirms Tether’s legitimate $86b assets </a>
<h2 class="wp-block-heading" id="tether-adds-to-bitcoin-holdings">Tether adds to Bitcoin holdings</h2>
In addition to making record profits, the company bought more Bitcoin in the final quarter of 2023. The audit pointed to 8,888 BTC worth an estimated $387 million acquired by USDT’s issuer. This brings Tether’s total BTC portfolio to 66,465 coins valued at almost $3 billion as private entities accumulate crypto’s largest token amid growing adoption.&nbsp;
The digital asset giant started buying BTC sometime in the first half of 2023, <a href="https://crypto.news/tether-shifts-investment-focus-to-bitcoin/" target="_blank" rel="noopener noreferrer nofollow">allocating</a> up to 15% of its net realized operating profit to the cryptocurrency. Its Bitcoin holdings have swelled in value since then as markets rallied on the back of institutional interest from Wall Street titans like <a href="https://crypto.news/blackrock-and-fidelity-lead-billion-dollar-spot-bitcoin-etf-race/" target="_blank" rel="noopener noreferrer nofollow">BlackRock</a> and Fidelity.&nbsp;
Read more: <a href="https://crypto.news/tether-expands-market-share-by-21-in-2023/" rel="noopener noreferrer nofollow"> Tether expands market share by 21% in 2023 </a>

Tether reports Q4 2023 profits of $2.8b

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