Tether Announces Profits Despite Crypto Winter

In welcome news for crypto investors starved of positive stories, Tether Limited Inc. reported impressive final quarter earnings for 2022. The stablecoin recorded a $700 million net profit.

The company had promised to rid itself of all commercial paper holdings (unsecured short-term debt) by the end of last year. Tether has now made good on that commitment, despite the crypto freeze adversely affecting so many other players in the industry.

Tether currently has about $67 billion in consolidated assets and excess reserves of around $960 million, highly commendable results. The company made consumer inroads through its ambitious marketing campaign that claimed the stablecoin is backed by the US dollar, thus allowing holders to convert their coins into equivalent fiat money at any time.

Analysts believe that Tether has shown enough resilience to suggest it can navigate the current and future bear markets. Tether was able to seamlessly handle $21 billion in redemptions this past year, which is the process of paying out investors who want to cash out their securities.

The news breathes some life into the crypto industry, which has been eagerly awaiting signs of life after FTX, the one-time darling of the crypto world, in addition to 100 of its subsidiaries, filed for Chapter 11 bankruptcy protection. These events rocked the industry, triggering the collapse of several crypto firms and damaging investor confidence in the viability of digital coins.