Former Citi Analyst Refutes Arthur Hayes’ Tether Insolvency Claims
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The post Former Citi Analyst Refutes Arthur Hayes’ Tether Insolvency Claims appeared first on Coinpedia Fintech News Arthur Hayes recently raised alarms over Tether but a former Citi crypto analyst says the concerns don’t match the reality of how the company operates. Joseph, who previously spent “100’s of hours writing research on tether for Citi,” responded directly on X, offering a clearer look at Tether’s balance sheet and profitability. A Missing Piece in the Tether Debate Joseph’s main point is straightforward: the reserves Tether publishes are not its full corporate balance sheet. He says the disclosures follow a “matching” philosophy meant only to show how USDT is backed and not everything the company owns. According to him, Tether also holds: equity investments, mining operations, corporate reserves, and possibly additional Bitcoin. Any remaining profits are paid out as dividends. In his view, this is the part Hayes overlooked. A Business Producing Billions Joseph also pushed back on the idea that Tether is vulnerable to asset swings. He highlighted how profitable the company has become since interest rates climbed. Tether currently holds about $120 billion in Treasuries earning roughly 4%. That translates to nearly $10 billion in annual profit, managed by a staff of around 150 people. Joseph called it “one of the most efficient cash generating businesses in the world.” He estimated Tether’s equity could be valued between $50-100 billion, noting the company has even explored raising $20 billion for a 3% stake, which is a valuation he admits is likely too high, but still shows how valuable the business has become. Stronger Liquidity Than Most Banks Hayes argued Tether could be wiped out if its Bitcoin and gold dropped 30%. Joseph disagrees, pointing out that banks typically keep only 5-15% of deposits in liquid assets, while Tether is “significantly better…
Filed under: News - @ December 1, 2025 12:27 pm