Tether's Record-Breaking $4.52 Billion Q1 Profit

Tether, a leading provider of the stablecoin USDT, reported a record profit of $4.52 billion in the first quarter of 2024, showing a 61% increase from the previous quarter. This substantial profit was driven mainly by its investments in U.S. Treasury bonds and the rise in value of its Bitcoin and gold holdings.

By the end of March 2024, Tether's net equity reached $11.37 billion due to over $90 billion invested in U.S. Treasury bonds, significantly contributing to this quarter's profit. The company's Bitcoin holdings also doubled to $5.4 billion, and its gold reserves grew to $3.7 billion.

It's important to note that Tether has not conducted a formal audit; instead, it issues quarterly attestations. The latest report shows $6.3 billion in excess reserves and $4.7 billion in secured loans, indicating robust financial health.

Tether's stablecoin, USDT, maintains a 1:1 value with the U.S. dollar and has a market capitalization of approximately $110 billion, signifying widespread use and trust. Tether issued 12 billion new USDT tokens during the first quarter, highlighting continued demand.

Besides its primary focus on stablecoins, Tether is diversifying into the data, technology, mining, and energy sectors, broadening its business scope and reducing investment risks. This strategic expansion underpins Tether's role in advancing digital economy innovation.