May 23, 2024
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Tether Holdings Reports Record $4.52 Billion Profit in Q1 2024

Tether Holdings, the entity behind the world’s largest stablecoin, Tether USDT, has announced a remarkable achievement in the first quarter of 2024, reporting a record net profit of $4.52 billion.

This notable figure reflects the company’s robust financial performance and strategic initiatives in the digital asset space, particularly Bitcoin holdings and gold investments.

Strategic Investments Drive Profits

The company unveiled its net equity for the first time, disclosing a substantial $11.37 billion as of March 31.

This marks a significant surge from the $7.01 billion recorded at the close of December 2023, as indicated in Tether’s attestation report for Q1 2024.

Notably, a substantial portion of the profit, approximately $1 billion, stemmed from operating profits derived from United States Treasury holdings.

Additionally, the firm accrued market-to-market gains totaling $3.52 billion from its Bitcoin and gold positions.

Tether’s financial reserves in Q1 2024. Source: Tether

Tether’s Dominance in Stablecoin Market

Tether’s USDT remains the reigning stablecoin giant, boasting a market capitalization exceeding $110 billion, according to CoinMarketCap data.

Furthermore, the company issued a staggering $12.5 billion worth of USDT in the first quarter of 2024, further solidifying its position as a key player in the digital currency landscape.

Bitcoin Holdings and Investment Strategy

In a strategic move to diversify its asset backing, Tether continues to assert its presence in the cryptocurrency realm.

Holding 75,354 BTC, valued at over $4.38 billion, in its Bitcoin wallet “bc1q,” Tether ranks among the top Bitcoin holders globally.

The firm recently acquired 8,888 Bitcoin worth $626 million from Bitfinex, further bolstering its digital asset portfolio.

Tether’s Bitcoin holdings. Source: Coinstats

Tether plans to invest 15% of its net profit into Bitcoin, underscoring its commitment to optimizing its asset allocation strategy.

Despite market fluctuations, Tether remains resilient. According to the CoinStats portfolio tracker, it boasts an unrealized profit of over 91% on its Bitcoin holdings, totaling over $2 billion.

As Tether continues to navigate the dynamic crypto landscape, its financial prowess and strategic investments position it as a formidable force in the digital asset ecosystem.

Image by pressfoto on Freepik

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