Tether Holdings has unveiled an unprecedented achievement, reporting a staggering $4.52 billion in net profit during the first quarter of 2024. This milestone marks a significant leap for the issuer of the leading stablecoin, Tether (USDT), renowned for its dominance in market capitalization.
What’s more, in a noteworthy move, Tether has opted to disclose its net equity for the very first time. The figures reveal a substantial surge, escalating from $7.01 billion in December 2023 to an impressive $11.37 billion by March 31. A meticulous examination of Tether’s Q1 2024 attestation report indicates that approximately $1 billion of the operating profits can be attributed to its holdings in the United States Treasury. The remaining $3.52 billion stemmed from market-to-market gains in Bitcoin and gold positions.
With its USDT universally recognized as the foremost stablecoin, boasting a market value exceeding $110 billion as per CoinMarketCap, Tether has indisputably solidified its position. In the opening quarter of 2024 alone, the company issued an astonishing $12.5 billion worth of USDT.
In addition, the report underscored a notable $1 billion surge in excess reserves, strategically designated to fortify Tether’s stablecoin offerings, with the reserves now hovering just shy of $6.3 billion. Despite revealing liabilities exceeding $104 billion tied to “digital tokens issued,” Tether showcased an impressive scenario wherein the value of its reserve assets eclipsed its liabilities by over $6.2 billion as of March 31.
Tether remains a prominent holder of Bitcoin, with its “bc1q” wallet currently holding 75,354 BTC, worth over $4.38 billion. This makes Tether the seventh-largest Bitcoin holder. Notably, on March 31, Tether acquired 8,888 Bitcoin valued at $626 million from Bitfinex. Despite Bitcoin experiencing a drop below the $60,000 mark, Tether has accumulated an unrealized profit of over 91%, surpassing $2 billion.
