Tether nets record $4.52 billion profit in Q1 2024 — majority from Bitcoin and gold

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As a seasoned crypto investor with a keen interest in stablecoins and their underlying financials, I find Tether Holdings’ Q1 2024 report both intriguing and reassuring. The significant surge in net profit and equity is noteworthy, and the diversified sources of revenue are a testament to the company’s robust business model.

In Q1 2024, Tether Holdings, which manages the largest stablecoin (USDT) globally, announced impressive earnings, raking in a net profit of approximately $4.52 billion.

As an analyst, I’d rephrase it as follows: For the first time, Tether disclosed its net equity, which amounted to $11.37 billion as of March 31, 2024. This figure marks a considerable jump from the $7.01 billion in equity reported at the end of Q4, 2023, based on Tether’s Q1, 2024 attestation report.

About $1 billion came from the US treasury earnings, while the remaining $3.52 billion were market value increases in the company’s Bitcoin (BTC) and gold investments.

As a stablecoin analyst, I can tell you that Tether’s USDT is currently the most valuable stablecoin globally, with a market capitalization exceeding $110 billion based on CoinMarketCap’s latest data. In the initial quarter of this year, Tether issued approximately $12.5 billion worth of USDT.

The report disclosed a $1 billion addition to Tether’s excess reserves, which serve as a safety net for its stablecoin operations. These reserves amounted to slightly under $7.3 billion prior to this increase.

The report disclosed that digital tokens amounted to over $104 billion in liabilities. However, Tether’s reserve assets were valued higher than its liabilities by approximately $6.2 billion as of March 31st.

This is a developing story, and further information will be added as it becomes available.

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2024-05-01 15:36