Stablecoin Giant Tether Strikes Gold: Achieves Record Net Profit Of $4.5 Billion In Q1
02 May 2024 - 7:00AM
NEWSBTC
Stablecoin issuer Tether, a prominent player in the cryptocurrency
market behind the widely used USDT stablecoin, has released its
audit statement for the first quarter of 2024, accompanied by a
report conducted by independent accounting firm BDO. The
report, which provides additional financial information beyond the
reserves backing Tether’s fiat-denominated stablecoins, shows the
company’s profit for the first quarter of the year, which saw an
increased influx of capital into the market. Tether Q1 2024
Financials Soar Digging into the numbers, the first quarter of 2024
proved highly profitable for Tether, with a net profit of $4.52
billion. The main contributors, the entities responsible for
issuing stablecoins and managing reserves, reportedly generated
approximately $1 billion of this profit from net operating gains,
primarily from US Treasury holdings. The remaining profits were
attributable to mark-to-market gains on Bitcoin (BTC) and gold
positions. Related Reading: Bitcoin Price Dips Below $57,000: 4 Key
Reasons The report also highlighted Tether’s success in increasing
its direct and indirect holdings of US Treasuries to over $90
billion. This includes indirect exposure through overnight reverse
repurchase agreements collateralized by US Treasuries and
investments in US Treasuries through money market funds. In a sign
of significant growth, Tether also disclosed its net equity for the
first time, revealing a figure of $11.37 billion as of March 31,
2024. This is an increase from the $7.01 billion equity reported as
of December 31, 2023. The report also highlighted a $1
billion increase in excess reserves, which support the company’s
stablecoin offerings, bringing the total to nearly $6.3 billion.
CEO Emphasizes Transparency And Stability The BDO confirmation
reiterated that Tether-issued tokens are 90% backed by cash and
cash equivalents, underscoring the company’s stance on maintaining
liquidity within the stablecoin ecosystem. Furthermore, the report
revealed that over $12.5 billion worth of USDT was issued in the
first quarter alone. Tether Group’s strategic investments, which
exceed $5 billion as of the report date, span various sectors,
including artificial intelligence (AI) and data, renewable energy,
person-to-person (P2P) communication, and Bitcoin Mining.
Related Reading: Machine Learning Algorithm Predicts Dogecoin Price
For May 2024 In response to the latest report, Paolo Ardoino, CEO
of Tether, expressed the company’s commitment to transparency,
stability, liquidity, and responsible risk management.
Ardoino highlighted Tether’s record-breaking profit benchmark of
$4.52 billion and the company’s efforts to increase transparency
and trust within the cryptocurrency industry. Ardoino further
claimed: In reporting not just the composition of our reserves, but
now the Group’s net equity of $11.37 billion, Tether is again
raising the bar in the cryptocurrency industry in the realms of
transparency and trust. Featured image from Shutterstock,
chart from TradingView.com
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