Tether Holdings, the issuer of the world’s largest stablecoin, Tether (USDT), reported a record net profit of $4.52 billion in the first quarter of 2024. The company attributed this profit to financial gains on Bitcoin and gold, as well as net operating profits. Tether’s net equity also increased to $11.37 billion as of March 31, a significant increase from the previous quarter. CEO Paolo Ardoino emphasized the company’s commitment to transparency, stability, liquidity, and responsible risk management.
The attestation report for Q1 2024 provided a comprehensive overview of Tether Group’s financial strength, highlighting its ownership of US Treasuries exceeding $90 billion. Tether’s stablecoins were backed by cash and cash equivalents at 90%, ensuring liquidity within the stablecoin ecosystem. The report also noted strategic investments of over $5 billion in various sectors, including AI, renewable energy, and BTC mining. Despite concerns about the lack of a formal audit, Tether’s quarterly attestation reports offer insights into the company’s balance sheet.
Tether’s decision to invest part of its operating profits in Bitcoin has proven lucrative, with the company’s Bitcoin holdings reaching 75,300 BTC, valued at over $4.38 billion. This diversification of its portfolio has contributed to Tether’s continued success despite market volatility. Tether remains confident in its financial position, with excess reserves totaling $6.3 billion to provide a buffer against potential risks. CEO Paolo Ardoino emphasized the company’s commitment to transparency, openness, and conservative risk management.
Despite Circle’s USDC surpassing Tether’s USDT in transaction volume, Tether remains dominant in the stablecoin market, commanding over 68% of the market with a market cap exceeding $100 billion. USDC’s rise is attributed to its predominant use within the US for transactions, while USDT serves primarily as a dollar-based store of value held outside the US. Tether recently entered the healthcare sector with a significant $200 million investment in Blackrock Neurotech, a leading biotech company specializing in brain-computer interface (BCI) technology.
According to CoinStats, Tether has an unrealized profit of over 91% and is worth over $2 billion, despite Bitcoin’s recent fall below the $60,000 mark. Tether’s continued success in the stablecoin market reflects its commitment to transparency, stability, and responsible risk management. The company’s strategic investments and diversification of its portfolio have contributed to its financial strength and sustained growth. CEO Paolo Ardoino’s emphasis on transparency and trust underscores Tether’s position as a leader in the cryptocurrency industry.
