Tether Achieves Record $4.5 Billion Profit in Q1 2024 Amid Surging Treasury Holdings

Tether, the issuer of the prominent USDT stablecoin, has reported a record-breaking net profit of $4.5 billion for the first quarter of 2024. This financial milestone was confirmed by a BDO assurance opinion, which also highlighted that Tether’s holdings in Treasury bills have surged to over $90 billion. The firm’s total net equity has concurrently exceeded $11.3 billion, fueled by its diversified operations.

The attestation further reveals that since the final quarter of the previous year, Tether’s ownership of U.S. Treasuries and net equity have experienced substantial growth, climbing from approximately $80 billion and $7 billion, respectively. Of the $4.5 billion in net profits reported this quarter, $1 billion originated from operations associated with issuing stablecoins and managing reserves. Primarily, these profits were generated from investments in U.S. Treasuries, while additional gains stemmed from holdings in Bitcoin (BTC) and Gold.

This quarter also marks a significant advancement in Tether’s reserve backing, with fiat-pegged stablecoins now supported up to 90% by cash and cash equivalents. Tether CEO Paolo Ardoino expressed that these financial results demonstrate the company’s commitment to maintaining robust risk management practices. He affirmed, “Tether is again raising the bar in the cryptocurrency industry in the realms of transparency and trust.”

According to the latest data from CoinGecko, USDT remains the leading U.S. dollar-pegged stablecoin with a market capitalization surpassing $110 billion, ranking as the third largest cryptocurrency, following only Bitcoin and Ethereum (ETH).

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