Key Insights:
- Tether Holdings Limited achieved a historic $4.52 billion net profit in Q1 2024, marking a significant increase from the previous quarter.
- Over $12.5 billion in USDT was issued in the first quarter, emphasizing Tether’s strong position in the stablecoin market.
- BDO’s attestation confirms that 90% of Tether-issued tokens are supported by cash equivalents, ensuring robust liquidity.
Tether Holdings Limited has reported a remarkable net profit of $4.52 billion for the first quarter of 2024. This marks a new high for the company, surpassing the previous record of $2.9 billion in the last quarter of 2023. The profit primarily stems from the company’s holdings in Bitcoin, gold, and US Treasuries, which now exceed $90 billion.
Tether Releases Q1 2024 Attestation: Reports Record-Breaking $4.52 Billion Profit, Highest Treasury Bill Ownership Percentage Ever, Total Group Equity of $11.37 Billion
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— Tether (@Tether_to) May 1, 2024
Paolo Ardoino, CEO of Tether, expressed satisfaction with the company’s performance, highlighting its commitment to transparency and financial stability. “Tether continues to set new profit benchmarks, reflecting our strong financial position and dedication to the cryptocurrency industry,” he stated.
The report also details Tether’s investments in various sectors, including AI and data, renewable energy, peer-to-peer communication, and Bitcoin mining. These strategic moves have contributed to a 680% increase in the company’s investment activities compared to the previous quarter, with total investments reaching $5 billion.
Additionally, Tether’s assurance report prepared by BDO has confirmed that 90% of the Tether-issued tokens are backed by cash and cash equivalents. This backs the company’s claim of maintaining high liquidity for its stablecoin, which is critical for user trust and regulatory compliance.
Furthermore, the company revealed a $1 billion increase in its excess reserves, which now total nearly $6.3 billion. These reserves serve as a financial buffer to support its stablecoin operations and effectively respond to market fluctuations.
Moreover, the report highlighted the issuance of over $12.5 billion in USDT during the quarter, demonstrating continued market demand and confidence in Tether’s financial practices.
The firm also disclosed its net equity, which, as of March 31, 2024, stood at $11.37 billion. This is a substantial increase from the $7 billion recorded at the end of the previous year and serves as a testament to Tether’s growing financial health and operational success.
