Tether (USDT) Profits Soar to a Record $7.7B in Q3 2022, Reserves Buffer Tops $6B

Tether Limited reported $2.5 billion in net profit for the third quarter, bringing its year-to-date gains to a record-breaking $7.7 billion.

Tether (CRYPTO: USDT) has seen its year-to-date gains reach a record $7.7 billion, with a net profit of $2.5 billion in Q3.

What Happened: Tether’s impressive performance was largely boosted by its gold holdings, which stand at around $5 billion. The firm recorded an unrealized gain of $1.1 billion.

According to Tether’s latest assurance opinion, conducted by accounting firm BDO, the company increased its excess reserve buffer to over $6 billion, showing a 15% growth rate in the last nine months.

As a result, the firm’s total equity reached an all-time high of $14.2 billion, with assets totaling $134.4 billion.

The stablecoin issuer has begun channeling a portion of its profits into commodity trading. It has also made investments in the rapidly expanding artificial intelligence (AI) and agriculture sectors, with its proprietary investments amounting to $7.7 billion.

Tether CEO Paolo Ardoino said, “By increasing our reserve buffer to over $6 billion and focusing on strategic investments, Tether is once again setting the standard for stability in the financial space.”

Tether's issuing firms now have over $105 billion in cash and cash equivalents, with a record $102.5 billion in US Treasuries.

This figure places the cryptocurrency firm among the top 18 global holders of US Treasuries, surpassing Germany, Australia, and the UAE. It is also around $5 billion more than Tether's previous attestation report.

New York-based financial firm Cantor Fitzgerald conducted the balance sheet review, with CEO Howard Lutnick expressing strong support for the stablecoin giant last year.

Moreover, the corporation added 7,100 Bitcoin (CRYPTO: BTC) to its hoard, which is now valued at nearly $4.8 billion.

According to CoinGecko data, USDT's market cap rose to $120 billion, showing a 30% increase year-to-date. Tether CEO Paolo Ardoino attributes this growth to the company's “unparalleled” financial strength.

Throughout its history, the stablecoin giant has faced its share of controversies.

Just last week, the Wall Street Journal reported that the firm was under criminal investigation in the U.S., though Ardoino dismissed the report as mere “noise.”