According to Ryan Selkis, Messari CEO, Tether’s net profit has risen to 10% of JP Morgan’s. In a recent post on X (formerly Twitter), Selkis compared the sizes of both establishments in terms of employees. According to him, Tether has less than 50 employees, while the number of staff at JP Morgan was 250,000.
Tether’s net profits are now 10% of JPMorgan’s.
Tether has ~50 employees, and JPM has 250,000. https://t.co/04QNO5UOzm
— Ryan Selkis (d/acc) 🇺🇸 (@twobitidiot) January 31, 2024
Selkis referenced Tether’s Q4 2023 attestation summary, published by the company’s CEO, Paolo Ardoino. According to the report, Tether made a $2.85 billion profit in Q4 2023. Split between net operational profit, which amounted to approximately $1 billion, and profit from gold and Bitcoin holding, worth about $1.85 billion.
Further details of Ardoino’s summary showed that Tether made a total profit of $6.2 billion in 2023. The summarized report noted that Tether’s ‘cash and cash’ equivalents now cover 90% of all issued tokens, the highest percentage in the last few years. The post reported the company’s U.S. Treasury Bill exposure at $80.3 billion.
According to Ardoino’s summarized report, Tether’s excess equity was $5.4 billion. It represents the undistributed profits on top of 100% reserves that Tether holds to back all issued tokens. The CEO also noted the company decided to keep the vast majority of profit within the stablecoin reserves to ensure the highest resiliency.
Meanwhile, he noted that in 2023, Tether accumulated enough excess equity to remove the impact of secured loans on token reserves. Hence, the excess equity, valued at $5.4 billion, is reportedly more than the remaining secured loans worth $4.8 billion.
Ardoino also reported Tether’s VC investment portfolio to be $1.45 billion. According to him, that figure covers investments across AI infrastructure, Bitcoin mining, P2P telecommunications, and other areas. He further noted that these are confirmed to remain outside of the consolidated reserves report within a new segregated VC umbrella. That would avoid the situation where such investments would impact the token reserves.
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