Tether Annual Profit Soars to $6.2 Billion, Critics Silenced

Blockchain technology, often criticized for its speculative nature, is rewriting its narrative through Tether’s extraordinary success. Renowned trader and entrepreneur Anthony Pompliano recently debunked these assumptions, showcasing Tether as a prime example of blockchain’s real-world impact.

It’s about time someone addressed these claims, right? Dive right into his insights below.

Defying the Critics

Pompliano countered skeptics by emphasizing Bitcoin’s staggering $850 billion valuation, with a solid $600 billion held by long-term investors. This underscores a strong belief in digital assets, surpassing traditional commodities like Gold. Tether, in particular, has emerged as a key example, demonstrating that stablecoins have practical value beyond speculation.

In a recent revelation, Pompliano clarified Tether’s strength, revealing its tokenization of almost $100 billion across various fiat currencies on different blockchains. Remarkably, Tether stands as the 16th largest holder of US Treasury bonds, solidifying its role in the financial world. Despite facing criticism in an unregulated framework, Tether’s success positions it as a crucial player in the US financial landscape.

Did You Know? Tether Now Holds 66,450 BTC of Worth $2.8 Billion

A Solid Q4

CEO Paolo Ardoino recently shared Tether’s impressive fourth-quarter report, unveiling a substantial $2.85 billion profit. The report showcased a significant portion of net operational profit and a robust portfolio of gold and bitcoin holdings. The total profit for 2023 reached an astounding $6.2 billion, narrating Tether’s remarkable journey.

In a surprising revelation, Tether outpaced traditional financial giants in just 90 days, boasting an annual run rate of $11.4 billion. Matt Hogan, Bitwise CIO, emphasized that this surpassed the profits of even Goldman Sachs in the last quarter.

Messari CEO Ryan Selkis added to this,

“Tether is now 10% of JP Morgan’s net profit, but with way fewer employees”. 

A Strong Business Model – Built to Last?

Pompliano highlighted Tether’s unique approach, focusing on holding reserves in diverse investments for availability and protection. The company’s excess equity, standing tall at $5.4 billion, surpasses any remaining secured loans. Notably, Tether boasts a profit per employee that exceeds $100 million, positioning it as one of the most lucrative businesses globally.

The success of stablecoins like Tether and USDC on the global stage is undeniable, offering quick and inexpensive value transfers. Tether’s consistent growth not only defies skeptics but also shows how important blockchain technology is today.