Tether, the issuer of USDT, achieved a significant milestone by recording a net profit of $4.5 billion in the first quarter of 2024, marking a new high for the company.
An assurance report from BDO, released on May 1, also revealed that Tether’s holdings in Treasury bills soared to over $90 billion, and the firm’s total net equity surpassed $11.3 billion, thanks to its diverse operations.
The report highlighted substantial growth in Tether’s ownership of U.S. Treasuries and net equity since the fourth quarter of the previous year, increasing from approximately $80 billion and $7 billion, respectively.
According to the attestation, $1 billion of the record profits was generated from stablecoin issuance activities and reserve management strategies. Essentially, the majority of profits came from holding U.S. Treasuries, with additional contributions from Bitcoin (BTC) and Gold holdings.
Additionally, this marks the first time that the firm’s fiat-pegged stablecoins have been backed up to 90% by cash and cash equivalents. Tether CEO Paolo Ardoino emphasized that these statistics demonstrate the company’s commitment to responsible risk management as a leader in the crypto and stablecoin markets.
According to CoinGecko, USDT is currently the largest U.S. dollar-pegged stablecoin, with a market capitalization exceeding $110 billion, making it the third-largest cryptocurrency behind Bitcoin and Ethereum (ETH).
Summary Review: Tether’s impressive financial performance in the first quarter of 2024, with a record-breaking net profit of $4.5 billion, underscores its position as a significant player in the digital asset market. The BDO assurance report, released on May 1, highlighted Tether’s robust financial standing, with Treasury bills holdings exceeding $90 billion and total net equity surpassing $11.3 billion, fueled by diversified operations. Significant growth in Tether’s ownership of U.S. Treasuries and net equity since the previous year further solidifies its financial strength and market presence. The report also revealed that a substantial portion of the record profits, $1 billion, was generated from stablecoin issuance and reserve management strategies, with U.S. Treasuries serving as the primary source of profit, supplemented by Bitcoin and Gold holdings. Furthermore, Tether’s commitment to responsible risk management is evident in its backing of stablecoins with 90% cash and cash equivalents, as noted by CEO Paolo Ardoino. With USDT maintaining its position as the largest U.S. dollar-pegged stablecoin and ranking third in overall cryptocurrency market capitalization, Tether continues to play a significant role in the global digital asset landscape.
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