Tether Quarterly Profit Rose to a Record $4.5 Billion

May 2, 2024 thejournalbiz

Tether posted record net profit of $4.52 billion in the first quarter, largely driven by interest earned from its holdings of US Treasuries and appreciation in Bitcoin and gold.

Total ownership of US Treasuries exceeded $90 billion

Tweet on Tether’s quaterly report gains

@Tether posted a record net profit of $4.52 billion in the Q 1, largely driven by interest earned from its holdings of US Treasuries and appreciation in Bitcoin and gold.#tether #btc #gold https://t.co/QYUNA7ZKUO

— The_Journalbiz (@the_journalbiz) May 2, 2024

Tether official news-tweet

Tether also said its net equity stood at $11.37 billion

The market value of Tether’s USDT token has climbed to above $110 billion, as the demand for the stablecoin rose during the latest crypto bull market. The company said in a statement Wednesday that it issued over $12.5 billion USDT in the period, and about $1 billion of the profit came from “net operating profit,” which is primarily derived from interest payments from Treasuries.

Stablecoins are a type of cryptocurrency that typically aim to keep a one-to-one value with fiat currencies such as the dollar. They are usually backed by cash and cash equivalents. Tether said it increased its direct and indirect ownership of Treasuries in the first quarter, now exceeding $90 billion. Most of the reserves backing its stablecoins are deposited in Treasuries, from which Tether earns profits on the interest paid.

Outside of the profit derived from US Treasuries, Tether said the remainder was made in mark-to-market gains from its holdings of Bitcoin and gold. The company had about $5.4 billion in Bitcoin and $3.7 billion in precious metals at the end of the quarter, according to a third-party attestation by BDO.