Tether posts $2.5B in Q3 profits, with 2024 earnings reaching $7.7B

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As a researcher who has been closely observing the crypto market for nearly a decade now, I must admit that Tether’s latest financial report is nothing short of impressive. The company’s ability to maintain such high profit margins and asset growth, especially amidst the volatile market conditions, is truly commendable.

In simple terms, Tether, a company that issues stablecoins, reported exceptional financial results yet again, with an impressive earnings figure of $2.5 billion during Q3 of 2024.

Based on a report released on October 31st, the combined profit for the company in 2024 stands at approximately $7.7 billion. The company’s equity amounts to $14.2 billion, while its total assets are valued at an impressive $134.4 billion.

The increase in the results can be attributed to the rising demand for their stablecoin, Tether (USDT), and the returns on U.S. Treasury bonds that support its reserves. In 2024 alone, the circulation of USDT has grown by almost 30%, with an additional $27.8 billion worth of tokens being issued this year, bringing the total circulating USDT to $120 billion.

Tether’s holdings in cash and similar assets have surpassed $105 billion, with the majority being U.S. Treasury bills, which equate to approximately $102.5 billion. This is a 5% growth from its U.S. Treasury portfolio that was valued at $97.6 billion in July.

As reported by Tether, their reserves surpassed $6 billion in 2024, marking a 15% growth over the previous nine months. In total, their reserves held approximately $125 billion, while liabilities resulting from token issuance accumulated to roughly $119 billion.

In 2021, the U.S. Commodities and Futures Trading Commission (CFTC) imposed a fine of $41 million on the company for falsely claiming its stablecoin reserves. Additionally, it agreed to a $18.5 million settlement with the New York Attorney General’s office under similar allegations.

In the recent quarter, the company’s success can be attributed not only to its overall performance, but also to the strong earnings from its gold reserves, estimated to have brought in around $1.1 billion in potential profits during Q3.

As a crypto investor, I am proud to be associated with Tether, which holds approximately 7,100 Bitcoins (BTC) worth around half a billion dollars at this moment, in addition to a diverse investment portfolio in startups spanning various sectors. This includes renewable energy ventures, Bitcoin mining projects, cutting-edge artificial intelligence initiatives, telecommunications companies, and educational institutions.

In the last ten years, Tether has experienced substantial expansion of its market share, particularly during the previous two years. This growth can be attributed to stricter regulatory scrutiny in the U.S., following the collapse of FTX in November 2022.

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2024-10-31 23:29