Tether makes 1.4BB in Q1, 2.4BB excess reserves, financial attestation from BDO

G

GlobalMacro90

https://www.coindesk.com/business/2...b-profit-in-q1-reveals-bitcoin-gold-reserves/

What do the tether/crypto tin hat wearers say about this one? Tether reported Q1 results and they are pretty insane ...

- ~1.5BB in net profit
- ~2.4BB in EXCESS reserves ... aka their assets are worth 2.4BB more than the liabilities (current tethers outstanding)
- This was signed off (attestation) by BDO. While it's not a big 4 firm, its basically number 5, and from all I can tell BDO is a legit company. Seems very unlikely they would be "in" on some big fraud that tether is running
- Vast majority of assets are in very safe stuff (~85% in treasury bills, repo and bank deposits)
- Others assets include precious metals (~4%), bitcoin(1.8%), corporate bonds (0.17%)

Some more links right from the source:

https://tether.to/en/transparency/#reports

https://tether.to/en/tethers-latest...parency-reveals-bitcoin-and-gold-allocations/

What I find interesting:

- This is the first time they have bought Bitcoin to my knowledge. Like it or not, Tether has a HUGE amount of assets. If they keep buying bitcoin with their profits then that is a significant source of demand for bitcoin going forward

- 1.4BB is a HUGE amount of money to make in a quarter.

- 2.4BB of excess reserves (think cushion) seems like a big cushion. Especially when you consider most of the assets are in treasury securities

- Its kinda hysterical that the Fed is bascially subsidizing bitcoin buys here. By raising rates, they make tether way more profitable. They are now using this profitability to buy bitcoin. Thanks Jay!

If you aren't totally biased, these reports should call into question the conspiracy theories around tether. Again this was signed off on by BDO. Now it's not a full audit I admit, but BDO is a legit company that would be putting everything at risk if they were lying here. That seems unlikely.

So, in my view, if you still think Tether is a fraud, you are really reaching here. The only real evidence for it was that Bloomberg article from years ago. Since then, tether has seemingly cleaned up its act (way less commercial paper for instance). So why do you still think this is a fraud???

@RedDuke
 
Attestations means shit as anyone knows. BDO themselves say that their report is just for the moment of time.

Ask yourself a question, BDO was hired last summer, almost a year ago, why there is no audit???? Case closed. Tether is a fraud without any doubt now.

they just printed another 1/2 billion recently. They can print any profit they desire :vomit:
 
I admitted this isn't an audit

BDO is a legit company tho no? They are putting their rep on the line for this attention.

I don't follow your simple thought process of attestation(from a legit company) = tether is a fraud and that the "case is closed". What? You are totally reaching here. Do you have any other evidence other than the Bloomberg article from 3 years ago?

So BDO says this is just a moment in time. So what are you saying? Tether buys 80BB in treasuries for 1 day, BDO does the attestation, then Tether sells the treasuries and YOLOs into bullshit? Do you really believe this?
 
Full BDO audit would remove any doubt about Tether being legit. BDO very reputable and large firm.​

They not risking their reputation with attestation. They just making nice coin with it.

attestation means they see the funds. Who owns the funds, were they just deposited there for 1 day attestation does not cover.

I did not read full report but even at glance it means nothing. BDO themselves say it.

It will soon be 10 years since Tether was created, and not a single audit. Wonder why :D?????
 
So you come to the conclusion that the 80BB worth of assets were just there for 1 day? And that basically BDO is getting played? Seems like a huge stretch.

Skepticism is fine (hell I have been very skeptical of Tether too, and have never nor will ever transact with Tether) but when facts change you gotta change your mind right? You are tying yourself in knots trying to remain a skeptic in this scenario IMO.
 
GlobalMacro90 said:
So you come to the conclusion that the 80BB worth of assets were just there for 1 day? And that basically BDO is getting played? Seems like a huge stretch.

Skepticism is fine (hell I have been very skeptical of Tether too, and have never nor will ever transact with Tether) but when facts change you gotta change your mind right? You are tying yourself in knots trying to remain a skeptic in this scenario IMO.
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Once again, just read what attestations means. The funds do not even have to be there. Attestation is a lipstick on a pig. Yeah there is lipstick, but it is still a pig.

logic is simple, no audit in 10 year for something that is so vital to crypto space are huge blasting flash lights that it is fraud.
 
johnarb said:
Tether is now buying bitcoins for their reserves, not much, only $1.5B worth

Print Tether, buy bitcoins, rinse and repeat

Prolly nothing...


https://twitter.com/x/status/1657479100762652672
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To be honest though, this doesn't inspire a lot of confidence in me. Luna did this after all, then they sold all bitcoin, and still it crashed as they couldn't defend the peg.

Now if bitcoin never drops below their average acquisition price, then good for them, but if we go down again, its kind of difficult to protect a stablecoin with an asset that is dropping in value. Maybe a few years from now, the bitcoin holdings will mean they have 5 times the value of assets covering the issued stablecoins, and hence will be in a very good position.

The BTC holdings are a small percentage of all their reported assets, but in a major crash, all assets can drop in unison but they somehow have to maintain that peg. So the fact that there is credible source of attack is a problem. Maybe Tether is like the Fed. Since they can do shady things in the background and never have to reveal all their secrets, they can get away with anything. The FED of course does publish their numbers, but since they can forever print, they also don't need to worry. Technically, Tether could be the FED but for the crypto world! LOL
 
NoahA said:
To be honest though, this doesn't inspire a lot of confidence in me. Luna did this after all, then they sold all bitcoin, and still it crashed as they couldn't defend the peg.

Now if bitcoin never drops below their average acquisition price, then good for them, but if we go down again, its kind of difficult to protect a stablecoin with an asset that is dropping in value. Maybe a few years from now, the bitcoin holdings will mean they have 5 times the value of assets covering the issued stablecoins, and hence will be in a very good position.

The BTC holdings are a small percentage of all their reported assets, but in a major crash, all assets can drop in unison but they somehow have to maintain that peg. So the fact that there is credible source of attack is a problem. Maybe Tether is like the Fed. Since they can do shady things in the background and never have to reveal all their secrets, they can get away with anything. The FED of course does publish their numbers, but since they can forever print, they also don't need to worry. Technically, Tether could be the FED but for the crypto world! LOL
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They own 1.5BB of BTC and have a 2.4BB cushion tho. Even if BTC went to $0 (@Pekelo has an orgasm) they would still be covered.

If BTC went to 0, as you said, a lot of other assets would follow. That being said, most (85%) of the reserves are in US treasuries which would probably go the other way (rally) if a true crisis occurred.

Basically - the BTC position is small and it should stay like that. I like BTC, but it shouldn't be a large position in a stablecoin for obvious reasons
 
NoahA said:
To be honest though, this doesn't inspire a lot of confidence in me. Luna did this after all, then they sold all bitcoin, and still it crashed as they couldn't defend the peg.

Now if bitcoin never drops below their average acquisition price, then good for them, but if we go down again, its kind of difficult to protect a stablecoin with an asset that is dropping in value. Maybe a few years from now, the bitcoin holdings will mean they have 5 times the value of assets covering the issued stablecoins, and hence will be in a very good position.

The BTC holdings are a small percentage of all their reported assets, but in a major crash, all assets can drop in unison but they somehow have to maintain that peg. So the fact that there is credible source of attack is a problem. Maybe Tether is like the Fed. Since they can do shady things in the background and never have to reveal all their secrets, they can get away with anything. The FED of course does publish their numbers, but since they can forever print, they also don't need to worry. Technically, Tether could be the FED but for the crypto world! LOL
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It's good to have concerns but Tether buying bitcoins for treasury is not the same as Luna UST buying bitcoins for treasury to defend the peg

Luna UST is an algorithmic stablecoin that paid a 20% yield. That's a yuuge hurdle rate

Tether prints USDT and does not pay interest. The Federal Reserve and Treasury would kill to have what Tether has

Tether prints 82 billion USDT's and collects $82 Billion and does not pay interest, wow, they just buy treasuries and earn billions of $

They made $1.4 Billion in profits in 1 quarter and they only have like 7 employees responsible for maintaining the printers online and there are papers whenever they print

$200 Million per employee per quarter but inflation is very high so they are probably unhappy and will need to print more Tethers

/sarcasm
 
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