Tether Nets $7.7B Profit Through Strategic Investments, Expanding Reserves

According to reports, Tether Limited made an ambitious $7.7 billion in year-to-date profit (YTD) and $2.5 billion in Q3. The report highlights Tether’s asset growth, mainly due to large dollar capital inflows into US Treasuries and Bitcoin with corresponding gold assets growth from price appreciation. Tether’s latest performance is its growth in the stablecoin and crypto space, with CEO Paolo Ardoino saying they want to be the known standard for stability and transparency. Q3 numbers confirmed by BDO show the company’s balance sheet is strong, with $134.4 billion in total assets under management.

Record Reserve Buffer and Equity

The latest Tether transparency report shows that the company’s reserve buffer is now above $6 billion, marking an upward movement of  15% from 4 months ago. This new reserve increase puts Tether at an all time high equity level of $14.2 billion. The company has been working on its reserves strategy and strategic investments have given Tether a reserve benchmark to maintain its financial strength.

Speaking on their achievements, Ardoino said, “By increasing our reserve buffer to over $6 billion, Tether is setting the standard for stability in the financial space.”

Expanding Holdings in U.S. Treasuries and Bitcoin

One of the reasons the company is doing well as an entity is because of its large investment in the  U.S. Treasuries and Bitcoin. Now, the company has $105 billion in cash and equivalents, with $102.5 billion parked in the US Treasuries. This puts Tether ahead as one of the largest holders of US Treasuries in the world, ahead of Germany and Australia.

Tether has also incorporated 7,100 Bitcoin, which has taken its total Bitcoin value to almost $4.8 billion, strengthening its crypto position as demand for digital assets grows.

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The company places a high priority and focus on making sure its asset-backed stablecoin, USDT, is fully backed by its treasury holdings. By buying more Bitcoin, the company continues to cement their position and dominance in crypto and expanding its control over the ecosystem and space they are betting on.

Surging USDT Circulation and Diversified Investments

The circulation of its USDT has surged 30% year-to-date, reaching $120 billion. Tether is now a top stablecoin, with $27.8B issued on the network as such. As Ardoino said, he emphasized that they are “thrilled” to be on a record-high USDT supply and reserve assets.

Outside of reserves, the company’s investment portfolio has grown to $7.7 billion across renewables, Bitcoin mining, Artificial Intelligence, telecommunications and education.

This diversified investment portfolio makes the company a major player not just in the crypto space but potentially across industries, as per its long-term economic vision.

Looking Ahead

Tether has made record-shattering profits and is investing its money strategically in reserves. This has not only made it financially stronger but has also made the company many more allies in the crypto & finance world. With $120 billion USDT in circulation and growing proprietary investments, the company maintains its position as the stablecoin king. Ardoino’s vision for stability and growth is clear through Tether’s balance sheets, which reflect continuously growing projections.

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