Tether recently released its Q1 2023 earnings report.
According to the report, Tether reported a net profit of $1.48 billion in Q1 2023.
Tether CTO Paolo Ardoino said that net profit of $1.48 billion led to $2.44 billion in excess reserves, which is a historical record.
Tether also announced for the first time the ratio of Bitcoin and gold reserves to their total reserves, in order to increase transparency. It was noteworthy that the gold rate in Tether's reserves is higher than Bitcoin.
The following information was included in the report regarding the reserves:
“2% and 4% of Tether's total reserves are held in Bitcoin and gold, respectively.
Secured loans reduced from 8.7% to 6.5%.
64% of total reserves are held directly in US Treasury bonds.
There was a significant decrease in unsecured bank deposits with counterparty risk.
Dollars for all tokens issued in 2023 were invested in US bonds.
The Company Management declares the following as of 9 May 2023:
The consolidated total asset amount of the group is at least 81,833,149,345 USD.
The consolidated total liability of the Group is USD 79,390,359.036, of which USD 79,372,401,626 is related to the digital tokens issued.
The Group's consolidated assets exceed its consolidated liabilities."
A profit of $1.48 billion is a pretty high figure. Because the largest asset management company Blackrock announced a net profit of $ 1.16 billion.
Although Tether has taken new steps in the name of transparency, it is still not disclosed in which commercial papers a significant part of the reserves are kept, where and in which banks cash or cash equivalents are stored.
