Tether Holdings Limited’s latest Assurance Report for the first quarter of 2023, completed by independent public accounting firm BDO Italia, revealed an all-time excess reserve hike of $2.44 billion, up $1.48 billion from the previous quarter.
The achievement reaffirms the accuracy of the Tether Consolidated Reserves Report (CRR) as of March 31, 2023, which breaks down the assets held by the group and includes new categories such as physical gold, overnight buybacks, corporate bonds, and bitcoin ownership.
Reports of tremendous success
The report also highlights Tether’s investment strategy, which shows that the majority of its reserves are invested in US Treasury bills, reflecting the company’s efforts to reduce its dependence on purely bank deposits as a source of liquidity.
The report highlights a 25% decrease in secured loans and an increase in assets allocated to US Treasury bonds, while gold and bitcoin make up about 4% and 2% of total reserves, respectively. All issues of new tokens were invested in US Treasury securities or placed into overnight repurchase agreements.
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Other details provided by the company show that approximately 85% of Tether investments are held in cash, cash equivalents and other short-term deposits, and highlight a 25% decrease in secured loans and an increase in assets allocated to US Treasury bonds.
“We are delighted with the massive success of Tether in the first quarter of 2023, as our excess reserves reached an all-time high of $2.44 billion. Our net profit last quarter was $1.4 billion, which is a testament to the strength and stability of our platform.”
Paolo Arduino, CTO of Tether.
The disclosure of Tether’s investment strategy in the report provides insight into how the company manages liquidity, which is vital for investors who want to understand the risks associated with investing in the token.