Tether Holdings, the issuer of the world’s largest stablecoin, Tether (USDT), achieved a record net profit of $4.52 billion in the first quarter of 2024. The company’s financial gains on Bitcoin and gold, totaling $3.52 billion, and an additional $1 billion from operating profits were major contributors to this success. Tether’s net equity, disclosed for the first time, stood at $11.37 billion as of March 31, reflecting the company’s commitment to transparency and responsible risk management. The attestation report for Q1 2024 showcased Tether Group’s financial strength, including its significant ownership of US Treasuries exceeding $90 billion.
Tether’s fiat-denominated stablecoins are backed by cash and cash equivalents at an impressive 90%, ensuring liquidity within the stablecoin ecosystem. The company has also made strategic investments of over $5 billion in various sectors such as AI, renewable energy, and BTC mining. Despite concerns about the lack of a formal audit, Tether’s quarterly attestation reports, attested to by BDO, offer insights into the company’s balance sheet. Tether’s decision to invest part of its operating profits in Bitcoin has proven lucrative, with its Bitcoin holdings reaching 75,300 BTC, valued at over $4.38 billion.
Tether CEO Paolo Ardoino emphasized the company’s commitment to transparency, stability, and liquidity, stating, “Tether once again demonstrates its commitment to transparency, openness, and conservative risk management.” Despite recent fluctuations in Bitcoin’s price, Tether remains confident in its financial position, with excess reserves totaling $6.3 billion to buffer against potential risks. Tether continues to lead the stablecoin market, commanding over 68% of the market with a market cap exceeding $100 billion, despite Circle’s USDC surpassing USDT in transaction volume.
Circle’s USDC recorded a transaction volume of $456 billion last week, compared to USDT’s $89 billion, indicating a substantial gain in market share for USDC. Despite this, Tether’s dominant position in the market remains strong. In a recent move, Tether ventured into the healthcare sector with a significant $200 million investment in Blackrock Neurotech, a leading biotech company specializing in brain-computer interface technology. This marks Tether’s first foray into the healthcare industry and highlights the company’s diversification strategy.
According to CoinStats, Tether has an unrealized profit of over 91% and is valued at over $2 billion, demonstrating the company’s resilience in the face of Bitcoin’s recent price fluctuations. Despite competition from USDC and other stablecoins, Tether’s strong financial position, strategic investments, and commitment to transparency continue to solidify its position as a leader in the stablecoin market. By prioritizing stability, liquidity, and responsible risk management, Tether has set a new profit benchmark and continues to raise the bar in the cryptocurrency industry in terms of transparency and trust.
