Tether Announces Earnings Report for Q1 2023

Tether company yesterday published the certification report completed by BDO Italia, the top five global independent public accounting firm. The report reaffirms the accuracy of Tether’s Consolidated Reserves Report (CRR), which breaks down the assets held by the group as of March 31, 2023. On the other hand, it was announced that Tether’s net profit in the first quarter was $ 1.48 billion. Thus, the company’s excess reserve reached $2.44 billion, breaking a record.

Tether, in the report published on its website, reported that it closed the first quarter of 2023 with a consolidated total assets of $ 81.8 billion. It was noted that the majority of its reserves were invested in US Treasury bonds. In addition, it was emphasized that the share of secured loans in total reserves decreased from 8.7 percent to 6.5 percent, and the assets allocated to US Treasury bills reached the highest percentage to date. In addition, it was stated that this is a 25% reduction.

Tether CTO Paolo Ardoino said in a statement:

We are very excited about the tremendous success of Tether in the first quarter of 2023, with our reserve surplus reaching an all-time high of $2.44 billion. As part of our ongoing risk management processes, we expect to make further changes as the overall economic environment changes and the market cycle progresses.

The CTO briefly shared what was written in the report on his Twitter account and added:

With $7.5 billion currently invested directly into overnight reverse repo, our reserves remain not only extremely high quality but also highly liquid.

Meanwhile, Tether’s great performance was compared to the first quarter performance of BlackRock, the world’s largest asset manager with $10 trillion. BlackRock reported its first-quarter profit of $1.16 billion. The New York-based company said it earned a net income of $7.64 per share. Adjusted earnings for depreciation costs and non-recurring costs were $7.93 per share. The results exceeded Wall Street expectations. The average estimate of the six analysts surveyed by Zacks Investment Research was earnings per share of $7.71.

The investment firm had revenue of $4.24 billion during this period, surpassing Wall Street estimates. The four analysts surveyed by Zacks expected $4.23 billion. In the comments, it was underlined that Tether outperformed Blackrock with a net profit of $ 1.48 billion.