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Tether Holdings Ltd, the issuer of the popular USDT stablecoin released its assurance report for the first quarter of 2024, recording a net profit of $4.52 billion. This marks a huge milestone for the firm as it builds on the momentum from Q4, 2023.
Tether discloses Q1 earnings
Of the $4.52 billion profit, Tether disclosed that $1 billion originated from net operating profits, derived primarily from U.S. Treasury holdings. The remaining $3.52 billion comprises mark-to-market gains in Bitcoin (BTC) and gold positions. Tether highlights that its direct and indirect ownership of the U.S. Treasuries is currently above $90 billion.
Additionally, Tether disclosed its net equity for the first time, displaying an amazing $11.37 billion as of March 31, 2024. This figure represents a notable increase from its recorded equity of $7.01 billion on Dec. 31, 2023. According to the report, the firm reserved $1 billion as a safety net for its stablecoin offerings, bringing the total to around $6.3 billion.
Tether noted that it issued more than $12.5 billion USDT in the first quarter alone. The firm reiterated that its tokens have a 90% backing from cash and its equivalents. This ensures that the company upholds liquidity within the stablecoin ecosystem.
Besides stablecoin investments, Tether has strategic investments totaling over $5 billion. This encompasses sectors such as renewable energy, artificial intelligence (AI), peer-to-peer connectivity and BTC mining.
Tether's crypto adventures
Tether’s outstanding Q1, 2024, performance does not come as a surprise as the company has been making efforts to show commitment to the crypto ecosystem.
The company recently minted one billion USDT on the Ethereum network, ahead of the Bitcoin halving event, which occurred in late April.
In another bold move, Tether CEO Paolo Ardoino also announced the release of USDT on Toncoin’s (TON) rails. As U.Today earlier reported, USDT on TON will be launched with an initial capitalization of $10,000,000.