According to the latest attestation report conducted by BDO, a global auditing firm, Tether achieved a record profit of $2.9 billion in the fourth quarter of 2023. This also marked the highest increase in excess reserves backing its tokens in circulation.
The net profit of $1 billion was primarily generated from holdings of US Treasuries, while the appreciation of bitcoin and gold reserves contributed to the remaining gains.
The company used $2.2 billion of the profits to increase its excess reserves to a total of $5.4 billion, while the rest was invested in projects such as mining, AI infrastructure, and P2P communications.
These investments are not considered part of the reserves by the company.
BDO confirmed that the $4.8 billion unsecured loans held by Tether at the end of the year were fully covered by the excess reserves.
