Tether Nets Record-Breaking $4.52B Profit in Q1, Bolstered By BTC And Gold Reserves

Tether, the issuer of the world’s largest stablecoin, USDT, reported a record-breaking $4.52 billion net profit during the first quarter (Q1) of 2024, which ended March 31. This marks an impressive 46.55% rise from the $2.9 billion net profit reported in the previous quarter.

Q1 Attestation

In an attestation report audited by leading accounting firm BDO, Tether shared an overview of its financial health.

According to the company, around $1 billion of its net profit was driven by net operating profits from U.S. Treasury holdings, while the remainder stemmed from mark-to-market gains in bitcoin (BTC) and gold positions.

Tether has increased its exposure to U.S. Treasuries, backing its stablecoins. Per the attestation, Tether’s direct and indirect ownership of U.S. Treasuries is now at over $90 billion.

“Indirect exposure was calculated to include overnight reverse-repurchase agreements collateralized by U.S. Treasuries, as well as investments in U.S. Treasuries through money market funds.”

For the first time, Tether reported its overall net equity. According to the firm, its net equity reached an impressive $11.37 billion as of the end of Q1. This represents a significant increase from the $7.01 billion equity recorded in December last year.

Tether Bolsters Excess Reserve

The report shows that Tether has also increased its reserve backing its stablecoins by $1 billion, bringing the total to approximately $6.3 billion.

In a show of transparency, BDO confirmed that Tether-issued tokens are backed by cash and cash equivalents at 90%. The report revealed that Tether issued around $12.5 billion in USDT in Q1 and the reserve for its tokens in circulation reached $110.3 billion.

Commenting on the development, Paolo Ardoino, the CEO of Tether, said:

“With the first attestation of 2024, Tether has demonstrated its unwavering commitment to transparency, stability, liquidity, and responsible risk management. In reporting not just the composition of our reserves, but now the Group’s net equity of $11.37 billion, Tether is again raising the bar in the cryptocurrency industry in the realms of transparency and trust.”