Tether Holdings, issuer of the world’s largest stablecoin Tether (USDT), has announced a historic net profit of $4.52 billion in Q1 2024, a significant milestone for the company.
The substantial profit, primarily derived from financial gains on Bitcoin and gold amounting to $3.52 billion, alongside an additional $1 billion from operating profits, fueled this achievement.
For the first time, Tether disclosed its net equity, reaching an impressive $11.37 billion as of March 31, a substantial increase from the previous record of $7.01 billion in December 2023. The Q1 2024 attestation report showcased Tether Group’s financial strength, emphasizing its ownership of US Treasuries exceeding $90 billion and stablecoin liquidity ensured by 90% backing with cash and equivalents.
Strategic investments exceeding $5 billion across sectors like AI, renewable energy, and BTC mining were also highlighted. Despite lacking a formal audit, Tether’s quarterly attestation reports, attested by BDO, offer insights into its balance sheet.
Investing part of its operating profits in Bitcoin proved lucrative, with Tether's Bitcoin holdings reaching 75,300 BTC, valued at over $4.38 billion.Tether’s resilience amid market volatility is evidenced by its excess reserves totaling $6.3 billion, mitigating potential risks.
CEO Paolo Ardoino emphasized Tether's commitment to transparency and risk management, maintaining substantial reserves and providing disclosures.
Despite Circle’s USDC surpassing USDT in transaction volume recently, Tether remains dominant with over 68% market share and a market cap exceeding $100 billion. Tether's expansion into the healthcare sector with a $200 million investment in Blackrock Neurotech signifies its diversification strategy.
