Tether Holdings, the powerhouse behind the world’s leading stablecoin, Tether, has announced a staggering net profit of $4.52 billion for the first quarter of 2024. The company’s performance has exceeded expectations, with the majority of its earnings stemming from investments in Bitcoin and gold.
In its quarterly report, Tether Holdings disclosed its net equity for the first time, revealing an impressive $11.37 billion as of March 31. This represents a substantial increase from the previous quarter’s $7.01 billion. Notably, around $1 billion of the profit was generated from operating earnings linked to United States Treasury holdings, while the remaining $3.52 billion was attributed to market-to-market gains from the company’s Bitcoin and gold positions.
Tether’s stablecoin, USDT, remains the largest in the world, boasting a valuation exceeding $110 billion according to CoinMarketCap data. During the first quarter of 2024 alone, the company issued $12.5 billion worth of USDT. Additionally, Tether increased its excess reserves by $1 billion, bringing the total to just under $6.3 billion, reinforcing its commitment to supporting stablecoin offerings.
Despite liabilities of over $104 billion related to digital tokens issued, Tether’s reserve assets surpassed these obligations by more than $6.2 billion as of March 31, affirming the company’s financial stability.
Noteworthy is Tether’s position as the world’s seventh-largest holder of Bitcoin. Its Bitcoin wallet, “bc1q,” currently holds 75,354 BTC valued at over $4.38 billion, according to Arkham Intelligence. Tether recently acquired 8,888 Bitcoin worth $626 million from Bitfinex on March 31, solidifying its position in the cryptocurrency market.
With Bitcoin’s value dipping below $60,000, Tether remains optimistic, sitting on an unrealized profit of over 91%, equivalent to over $2 billion, as reported by the CoinStats portfolio tracker.
In a move to further diversify its backing assets, Tether announced plans to invest 15% of its net profit into Bitcoin. This strategic decision underscores the company’s confidence in the long-term potential of cryptocurrency markets, positioning Tether for continued success in the evolving financial landscape.
