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Tether Holdings, the company behind the renowned stablecoin USDT, has disclosed a staggering net profit of $4.52 billion in the first quarter of 2024, setting a new record for the firm.
Unveiling Strong Financial Performance
Releasing its attestation report for Q1 2024, Tether revealed a net equity of $11.37 billion as of March 31, showcasing a notable surge from the previous quarter's $7.01 billion. This surge in equity primarily stems from a substantial increase in market-to-market gains, particularly in Bitcoin and gold positions.
Driving Force Behind Profit Surge
Tether's exceptional financial performance in Q1 2024 was driven by a combination of factors, including operating profits from U.S. treasury holdings amounting to $1 billion. Moreover, market-to-market gains contributed significantly to the firm's record-breaking profits.
Stablecoin Dominance
With USDT standing as the world's largest stablecoin, valued at over $110 billion according to CoinMarketCap, Tether's issuance of $12.5 billion worth of USDT in the first quarter underscores its unparalleled dominance in the stablecoin market.
Maintaining Robust Reserves
Tether also disclosed a substantial increase in excess reserves, bolstering its stability and resilience in the market. With excess reserves nearing $6.3 billion, Tether continues to uphold robust financial backing to support its stablecoin offerings.
Balanced Financial Position
Despite liabilities related to digital tokens issued amounting to over $104 billion, Tether's reserve assets surpass the value of its liabilities by over $6.2 billion, indicating a balanced and secure financial position as of March 31. Disclaimer: The views and opinions expressed in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.