Tether Reports Record $13B Profit, U.S. Treasury Holdings Hit $113B
- Tethers 2024 profit hit $13B, just 10% shy of Goldman Sachs $14.28B earnings.
- Tether now holds $113B in U.S. Treasuries, ranking among the worlds top holders.
- Tethers equity surpassed $20B, with a record $7B reserve buffer for financial stability.
Global accounting firm BDO conducted the assurance opinion of Tether Holdings Limited for the fourth quarter of 2024. The report reaffirms the accuracy of Tethers Consolidated Reserves Report (CRR) and offers a detailed breakdown of assets held as reserves for the companys tokens. Tether issued a record-breaking financial report for the year, with net profits reaching more than $13 billion, the first time in the companys history.
Q4 2024 Highlights and Financial Performance
Tether posted impressive figures on its financial metrics, making for a record-breaking fourth quarter of 2024. The companys group equity reached over $20 billion, proving resilient and making further strategic investments into the renewables, Bitcoin mining, AI, and telecommunication sectors. It also had its reserve buffer cross over $7 billion for the first time marking a 36% increase from the previous year.
A key development in the quarter was the exposure to U.S. Treasuries reaching an all-time high of $113 billion. With this expansion, the company is among the biggest holders of U.S. Treasuries worldwide, reflecting its mandate for liquidity and stability. In the fourth quarter, the company issued more than $23 billion in USD, and for the full year of 2024, it issued $45 billion.
According to its management, this was achieved due to its diversified investments in gold and Bitcoin, which created profits of about $5 billion in 2024. The investment company also reported significant contributions from traditional investments, such as treasuries and repurchase agreements.
Tethers Global Expansion and Licensing Milestone
In addition, Tether has achieved much worldwide growth, receiving a stablecoin issuer and Digital Asset Service Provider (DASP) license in El Salvador. The Group then continues its mission of driving financial inclusion and innovation worldwide from its new headquarters in the country. Licensing its International SA de C.V. is vital for improving the companys international regulatory status and operations.
Another milestone includes its integration with Bitcoin. Meanwhile, the company announced it would bring USDT to Bitcoins base layer and Lightning Network. This is a major venture for Tether and Bitcoin, two of the major forces in the cryptocurrency market.
The company has had remarkable achievements, although its control of the stablecoin market has declined slightly. Competitors such as USD Coin (USDC) gained market share, and the companys market cap fell to around 65% by 2024. However, USDT maintains a dominant share of centralized exchanges total market share of 82%. This implies that USDC is showing signs of momentum.
Read more: https://www.tronweekly.com/tether-reports-record-13b-profit/
Text source: TronWeekly
