Tether Flaunts $700M Q4 2022 Net Profit Despite Troublesome Crypto Winter

Tether Limited Inc., the company behind the popular asset-backed cryptocurrency stablecoin Tether (USDT), had an impressive Q4 2022, which recorded a $700 million net profit.

This allowed the company to exit from holding commercial paper despite the troublesome crypto winter that urged crypto businesses to cut their losses by letting go of some employees.

The company’s performance was shown in its attestation report dated December 31, 2022, which was completed by BDO Italia, one of the top-five international accounting firms, and made public by Tether Thursday.

The said report confirmed the integrity of the company’s Consolidated Reserves Report (CRR), which detailed the company’s holdings as of the end of December last year.

It also revealed that the company finished the previous year with flying colors since it had zero commercial paper, recorded around $67 billion in consolidated assets and had excess reserves of around $960 million.

The company previously made it a goal to eliminate commercial paper — a kind of short-term, unsecured debt — by the end of 2022, and it was able to do so.

Moreover, Tether added over $700 million in net profit in the fourth quarter to the reserve that backs its stablecoin.

The company made sure it made good on its marketing campaign that the USDT is backed by the U.S. dollar by securing enough cash reserves so holders can turn their USDT into fiat currency any time they want.

Tether’s chief technology officer Paolo Ardoino shared that the company was able to execute more than $21 billion in redemptions last year.

“After a tumultuous end to 2022, Tether has once again proven its stability, its resilience and its ability to handle bear markets and black swan events, setting itself apart from the bad actors of the industry,” the executive said.

“Not only were we able to smoothly execute over 21 billion dollars in redemptions during the chaotic events of the year, but Tether has, on the other side, issued over $10 billion of USDT, an indication of continued organic growth and adoption of Tether,” he continued.

“Last quarter, Tether generated over $700 million in profits, adding to its reserves. We are proud of how Tether has continued to be a driving force in rebuilding trust within the crypto industry, and we are determined to continue to set a positive example for our peers and competitors alike,” the executive said further.

The previous year will always be one of the most unforgettable years in the history of the cryptocurrency industry.

In May, TerraUSD (UST), the so-called algorithmic stablecoin of the Terra network, crashed and eventually brought down the ecosystem’s native token LUNA.

A month before the year ended, FTX, the once most trusted brand in the crypto space, alongside more than 100 of its subsidiaries, filed for chapter 11 bankruptcy protection. This affected the entire industry, triggering the shutdown of several crypto businesses and prolonging the crypto winter in the market. With FTX’s unraveling, many retail investors lost faith in CEXs.