Arthur Hayes has sparked concerns about Tether’s solvency, but a former Citi crypto analyst refutes these claims, pointing to the company’s robust financial health. Joseph, who previously spent countless hours researching Tether for Citi, argues that the company’s reserves don’t fully represent its entire balance sheet. Instead of solely showing how much USDT is backed, Tether also holds equity investments, mining operations, corporate reserves, and potentially additional Bitcoin. His analysis emphasizes Tether’s profitability, stating that the company enjoys strong returns from investments and pays out dividends to remaining profits. This approach, Joseph claims, significantly mitigates risk. He argues against Hayes’ concerns about asset swings by highlighting Tether’s impressive profitability. With a portfolio of $120 billion in treasuries yielding roughly 4% interest, Tether generates nearly $10 billion annually. His estimates suggest Tether’s equity value could reach between $50 and $100 billion. He further explains that the company has even explored raising capital for a 3% stake worth up to $20 billion, highlighting its strong market value. Joseph contrasts Tether’s stability with traditional banks, which hold only a small fraction of deposits in liquid assets. While Hayes argued Tether could be wiped out by Bitcoin and gold drops exceeding 30%, Joseph counters that Tether possesses greater collateralization than banks. Unlike central banks, Tether is independently managed. Joseph’s detailed analysis offers a more nuanced perspective on the situation, suggesting Tether isn’t facing an imminent insolvency crisis but rather a highly profitable operation with far more behind it than publicly reported reserves.