Stablecoin Giant Tether Strikes Gold: Achieves Record Net Profit Of $4.5 Billion In Q1
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 Tethers fiat-denominated stablecoins, shows the companys 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.
The report also highlighted Tethers 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 companys 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 companys 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 Groups 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.
In response to the latest report, Paolo Ardoino, CEO of Tether, expressed the companys commitment to transparency, stability, liquidity, and responsible risk management.
Ardoino highlighted Tethers record-breaking profit benchmark of $4.52 billion and the companys 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 Groups net equity of $11.37 billion, Tether is again raising the bar in the cryptocurrency industry in the realms of transparency and trust.
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Text source: NewsBTC
