Tether Reports Record $5.2B Net Profit in First Half of 2024

The largest stablecoin issuer, Tether, reported a net profit of $5.2 billion for the first half of the year, its highest ever since its inception.  The Wednesday attestation also saw Tether declare a net operating profit of $1.3 billion for Q2, its highest quarterly net inflow ever.

Tether’s impressive earnings were primarily from investments in traditional asset classes, especially the US Treasury. Accounting giant BDO conducted the firm’s earnings report.

“With the second quarter attestation of 2024, Tether has once again demonstrated its unwavering commitment to transparency, stability, liquidity, and responsible risk management,” Tether’s CEO Paulo Ardoino said in reaction to the quarterly attestation report.

Tether’s US Debt Reaches ATH

The stablecoin issuer’s earnings report showed that its ownership of the US debt has reached an all-time high in excess of $97.6 billion. This puts its US Treasury holdings above all other countries, including Germany, the United Arab Emirates, and Australia.

Tether’s investment in the US Treasury placed it 18th in the ranking of the highest owners of US debt. The issuer is also the third-highest holder of the 3-month US Treasury, just after the United Kingdom and the Cayman Islands.

Given the country’s recent struggles, Tether’s decision to keep investing in US debt has been questioned. The US national debt reached a new record of $35 trillion on Tuesday, a testament to the country’s increasing fiscal predicament.

Bitcoin Loss Surpasses $650M

According to Tether’s attestation, it currently has an unrealized loss of over $650 million due to Bitcoin’s drop in price. The issuer has about 75,354 BTC, worth almost $5 billion at the current market price.

Tether reported the same amount of Bitcoin held in Q1 2024, a deviation from its trend of periodically purchasing the asset. The report also contradicted Ardoino’s 80K BTC declaration in a tweet on Wednesday.

The leading stablecoin issuer stated that its gold portfolio has an unrealized profit of $165, slightly compensating for Bitcoin losses.

As part of its reinvestment strategy, Tether revealed that it invested in “strategic projects,” which include sustainable energy, Bitcoin mining, and AI infrastructure. This it did while still maintaining an excess reserve of $5.3 billion.