Cryptocurrency firm Tether estimates that it will record a profit of $700 million in the March quarter, bringing its total excess inventory to over $1 billion.
This was told to CNBC by the company’s chief technology officer, Paolo Ardolino, revealing the latest figures for the first time.
Tether issues USDT and is backed by real-world assets such as fiat currency and US Treasurys, so it is always one-for-one redeemable against the US dollar.
Tether eventually sold all of its trading portfolios and moved into US Treasurys, which are considered more stable and reliable assets. The company produces so-called attestations, which are reports prepared by an auditor to certify the company’s reserves and assets held.
The latest report released by Tether for the December quarter showed that it had more assets than liabilities.
Tether then revealed in February that it had a $700 million profit in the December quarter. The company’s total assets after deducting liabilities totaled $960.6 million.
Ardino estimates that excess inventory will increase by $700 million in the current quarter, which is not yet over.
That would bring Tether’s excess reserves to $1.66 billion. And it would be the first time Tether has ever surpassed the $1 billion mark. “So that money stays in Tether in order to further capitalize the stablecoin,” he noted.
The value of all USDT in circulation has increased significantly this month from $70.98 billion on March 1 to $78.14 billion on Thursday, according to CoinMarketCap.
The increase came in part thanks to people flocking to the USDT after it was revealed that rival Circle, which issues the USDC stablecoin, had exposure to the now-collapsed Silicon Valley Bank.
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