Yesterday, Tether Holdings Limited published its Q1 2023 Assurance Report, in which a record-breaking excess of reserves of $2.44bn, up $1.48bn in net profit for the first quarter of this year, has been reported. This is another excellent quarter for Tether after it announced a $700 million profit in the previous report.
The $1.48bn net profit is another boost to Tether’s reserves as the token circulation also increased by 20%.
The Company’s Investments
Around 85% of the company’s investments are held in cash, cash equivalents, and similar short-term deposits. The report shows a reduction of secured loans, from 8.7% to 6.5% of reserves, which is a 25% reduction overall. Furthermore, Gold and Bitcoin represent approximately 4% and 2% of its total reserves, respectively.
Most of Tether’s reserves are invested in US Treasury Bills and the company closed the year’s first quarter with $81.8bn in consolidated total assets. Also worth mentioning is that the company is going out of its way to reduce reliance on bank deposits.
Further data in the report shows another record break for Tether, as the company has over $53bn in US Treasury Bill holdings, which translates to more than 64% of total reserves.
The company states that all the new supplies of tokens have been either placed in overnight reverse repo facilities or were invested in US Treasury Bills. As for the exact number, the report shows $7.5bn invested in overnight reverse repo.
The Company’s Subsidiaries
The report also shows some information about the company’s subsidiaries (called the Group in the report). It’s stated that as of May 9 2023, the Management of the Company asserts that the Group’s consolidated total assets amount to at least $81,833.149,345. In addition, the Group’s consolidated total liabilities amount to $79,390,359,036, of which $79,372,401,626 relates to digital tokens issued.
We are thrilled with the tremendous success Tether has achieved in Q1 2023, with our reserves’ surplus reaching an all-time high of $2.44bn. Our net profits for the quarter were $1.48bn, a testament to the strength and stability of our platform. We continue to monitor the risk-adjusted return on all assets within our portfolio on an ongoing basis and expect to make further changes as the overall economic environment changes and the market cycle progresses as a part of our normal, ongoing risk management processes.
Paolo Ardoino said.
