Tether, the leading stablecoin in the cryptocurrency market, has reported a significant increase in its treasury reserve holdings in the second quarter of 2023. According to the company’s Q2 attestation from accounting firm BDO, the excess reserves have jumped by $850 million, bringing the total to an impressive $3.3 billion.
In addition to its treasury reserve growth, Tether has also disclosed its indirect exposure to US Treasurys held by money market funds. The stablecoin has roughly $72.5 billion backing its stablecoins, highlighting its significant financial strength and stability.
Paolo Ardoino, the chief technology officer of Tether, revealed that the company’s US Treasury bill holdings are equivalent to those held by sovereign nations like Mexico. This speaks volumes about the stability and security Tether provides to its users.
The company’s decision to increase its excess reserves comes in the wake of the collapse of FTX and other cryptocurrency lending firms. Tether has been diligently building up these reserves with its company profits, ensuring the safeguarding of assets and maintaining stability in the market.
The Q2 report also states that Tether’s operational profits reached an impressive $1 billion from April to June 2023, marking a substantial 30% increase from the previous quarter. This significant growth is a testament to Tether’s strong position in the cryptocurrency market.
Furthermore, Tether’s financials reveal that 85% of its reserves are held in liquid investments, with total assets estimated at $86.4 billion and outstanding liabilities at $83.17 billion. These figures indicate the company’s robust financial health.
To further strengthen the company, Tether’s shareholders have decided to carry out a $115 million share buyback. Additionally, profits from Q2 have been directed towards energy-related initiatives, showcasing the company’s commitment to sustainable practices.
However, it is important to note that these energy-related initiatives are not included in Tether’s attestation report as suitable reserves for circulating tokens. The specific details of these initiatives have not been clarified in the report, prompting inquiries from interested parties.
Tether’s strong performance in Q2 can be attributed to the overall surge in the cryptocurrency markets, driven by Bitcoin’s consolidation around the $30,000 mark. As the leading stablecoin, Tether has been a solid choice for investors seeking stability and security amidst the market fluctuations.
With its impressive treasury reserve growth and commitment to maintaining stability, Tether continues to solidify its position as a trustworthy and reliable stablecoin in the cryptocurrency market.
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