Tether, the company responsible for the issuance of the leading stablecoin USDT, has made public an attestation highlighting its financial performance during the second quarter of 2023. This documentation, composed by BDO, a global conglomerate of accounting and consulting firms, indicated that Tether augmented its reserves by $850 million throughout this period, elevating its total surplus reserves to $3.3 billion.
Tether Discloses Surplus Reserves Soared to $3.3 Billion in Q2
Tether, the entity that manages the USDT stablecoin, a major player in the crypto market, has unveiled an attestation that sheds light on its financial state as of June 30, displaying the breakdown of its reserves.
The report, drafted by BDO, an international collective of accountancy and consultancy firms, concluded that Tether’s reserves had seen a boost of $850 million in Q2. The report also discovered that Tether’s surplus reserves, defined as the “profits of the company not distributed to shareholders and that the company chose to retain beyond the 100% reserves that Tether holds to back all existing tokens,” had hit $3.3 billion.
Tether asserts that its financial status “underscores the significance of implementing appropriate risk management strategies and taking care of its community, by holding almost an extra 4% of assets in its reserves.”
The report on Tether’s consolidation of reserves also revealed that the company has approximately $56 billion exposed to U.S. Treasury bills with an average maturity of less than 90 days. Tether also has an indirect exposure to these treasuries via money market funds worth $8.1 billion, and nearly $9 billion are tied to a set of treasuries provided to Tether as collateral for reverse repurchase agreements.
Notably, the company also possesses $1.67 billion in bitcoins and $5.5 billion in “secured loans,” which Tether defines as being “over-collateralized by liquid assets that are subject to margin calls and liquidation processes.”
For us, transparency is more than just a trendy term; it is a fundamental component of our ideology. We hold the belief that open dialogue and robust financials cultivate trust and dependability, which is what the international community is entitled to, especially in a year that has witnessed several failures in both the banking and crypto sectors.
Tether has publicized two investments in distinct bitcoin mining endeavors in Latin America as part of its thrust into the renewable energy industry. In June, Tether revealed its involvement in Volcano Energy, a renewable bitcoin mining initiative worth $1 billion in El Salvador. Also, in May, the firm teamed up with a local startup in Uruguay to launch a Bitcoin mining project.
Frequently Asked Questions (FAQs) about Tether’s Q2 attestation
What is the significant disclosure in Tether’s Q2 attestation?
Who prepared the attestation report for Tether?
The attestation report was prepared by BDO, an international network of accounting and consulting firms.
What are the excess reserves as per Tether’s Q2 attestation?
Excess reserves are defined as the company’s own profits that are not distributed to shareholders and that the company has decided to retain, beyond the 100% reserves that Tether maintains to back all the outstanding tokens.
What does Tether’s Q2 attestation say about their Treasury Bills and other investments?
The attestation reveals Tether has an exposure of approximately $56 billion to U.S. Treasury bills with an average maturity of less than 90 days. Additionally, Tether holds $1.67 billion in bitcoins and $5.5 billion in “secured loans.”
What are Tether’s recent investments in the renewable energy sector?
Tether announced investments in two different bitcoin mining initiatives in Latin America as part of its expansion into the renewable energy sector. These include participation in a $1 billion renewable bitcoin mining project in El Salvador and a partnership with a startup in Uruguay for a Bitcoin mining project.
More about Tether’s Q2 attestation
- Tether Official Website
- BDO Global
- USDT (Tether) on CoinMarketCap
- Volcano Energy Project in El Salvador
- Introduction to Bitcoin Mining