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Tether's 'Record-Breaking' Q4 Profit Partly Attributed to Gold and BTC Price Appreciation
In the last quarter of 2023, Tether Holdings Limited registered a “record-breaking net profit of $2.85 billion.” Overall, the stablecoin issuer’s net profit in 2023 topped $6.2 billion. Tether’s secured loans ($4.8 billion), which are collateralized by highly liquid assets, were “fully covered by the undistributed accumulated profits known as excess reserves ($5.4 billion).”
>Bitcoin and Gold Price Appreciation Contribute to Tether’s Record Profit
According to Tether Holdings Limited’s latest consolidated reserves report (CRR), the stablecoin issuer recorded a record-breaking net profit of $2.85 billion in the fourth quarter of 2023. Of this, $1 billion was generated from interest on Tether’s U.S. treasuries holdings, while the remainder was primarily from the appreciation of gold and bitcoin reserves.
Overall, Tether’s net profit in 2023 was $6.2 billion, with approximately $4 billion representing the net operating profits generated by U.S. Treasuries, Reverse Repo, and Money market funds. The remaining $2.2 billion was generated by other asset classes.
In addition to the positive financial performance, Tether Holdings Limited also experienced an all-time-high increase in excess reserves, which rose by $2.2 billion to close at $5.4 billion. As a result, Tether’s secured loans ($4.8 billion), which are collateralized by highly liquid assets, are “fully covered by the undistributed accumulated profits known as excess reserves ($5.4 billion).”
Commenting on the stablecoin issuer’s financial performance and the latest BDO attestation, Paolo Ardoino, the CEO of Tether, said: "Tether’s Q4 attestation underscores our commitment to transparency, stability, and responsible financial management. Achieving the highest percentage of reserves in Cash and Cash Equivalents reflects our dedication to liquidity and stability. The substantial net profits generated not only in the last quarter of the year but throughout the year, amounting to $6.2 billion, showcases our financial strength."
Ardoino also touted Tether’s investment in sustainable energy, bitcoin (BTC) mining, artificial intelligence (AI), and peer-to-peer technology as evidence of his firm commitment to an inclusive financial future.
*Source: Bitcoin.com Polygon Labs, the company behind the Polygon blockchain, has announced layoffs affecting approximately 19% of its team members. CEO Marc Boiron explained in a Feb. 1 blog post that the decision was made to create a more efficient and agile organization, rather than due to financial difficulties.
Boiron emphasized that the layoffs were not an easy decision but were necessary to enhance performance and return Polygon Labs to its "underdog" roots. He stated that the company aims to operate with a "surgical team" and reduce bureaucracy. Boiron did not disclose which specific roles or departments would be affected by the layoffs, but promised to share more information as soon as possible, respecting employees' privacy.
Polygon co-founder Sandeep Nailwal echoed this sentiment in a post on X, stating that the cuts were a necessary step to regain the company's underdog spirit. This move follows a previous round of layoffs in February 2023, where Polygon cut 20% of its staff as part of internal restructuring efforts.
Polygon's layoffs are part of a broader trend of cost-cutting and restructuring across various industries. Asset manager BlackRock, known for its Bitcoin exchange-traded fund (ETF) in the United States, reportedly planned to cut 3% of its staff in January. Financial payments firm Block also reportedly laid off 1,000 employees to streamline operations. 
