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- Tether Holdings reported in its Q2 attestation that its surplus reserves increased by $850 million.
- From April to June 2023, Tether’s operational profits exceeded $1 billion.
As per its latest financial attestation for the second quarter of 2023, Tether’s treasury reserve assets backing the circulating USDT tokens continue to expand. Tether Holdings indicated in its Q2 attestation report that its surplus reserves had risen by $850 million, reaching a total of $3.3 billion, according to data from accounting firm BDO.
The report also discloses the company’s indirect exposure to U.S. Treasuries held through money market funds and U.S. Treasuries that collateralize its sudden repo for the first time.
Emphasizing Surplus Reserves
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Following the harsh crypto winter and the collapse of several firms last year, Tether has focused on directing corporate earnings towards building surplus reserves. Tether’s 100% reserves for redeeming USDT tokens in circulation are not counted within the surplus.
Tether’s CTO Ardoino has opted to utilize income from shareholders to establish a substantial excess reserve, as he believes that companies with undercollateralized assets or operations have introduced risks into the broader crypto ecosystem.
Additionally, from April to June 2023, Tether’s operational earnings surpassed $1 billion, marking a 30% rise compared to Q1 2023. The quarterly performance improved due to a market-wide rally driven by Bitcoin’s rise to the $30,000 mark.
An impressive 85% of Tether’s reserves are held in “liquid” assets such as cash or currency equivalents, according to the 2023 Q2 report. Tether’s most recent reserve attestation indicates that the value of the company’s assets stands at $86.4 billion. Furthermore, there are currently $83.17 billion worth of USDT tokens in circulation, making Tether responsible for that amount. Tether has maintained a leading position in the stablecoin market for an extended period.
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