Tether Holdings, the issuer of the world’s largest stablecoin, Tether (USDT), reported a record net profit of $4.52 billion in the first quarter of 2024. This significant achievement was primarily due to financial gains on Bitcoin and gold, totaling $3.52 billion, and an additional $1 billion from operating profits. The company’s net equity stood at $11.37 billion as of March 31, a substantial increase from the previous record of $7.01 billion at the end of the previous quarter. Tether’s CEO emphasized the company’s commitment to transparency, stability, liquidity, and responsible risk management.
The attestation report for Q1 2024 provided a comprehensive overview of Tether Group’s financial strength, including an increase in ownership of US Treasuries exceeding $90 billion. Tether’s fiat-denominated stablecoins were backed by cash and cash equivalents at 90%, ensuring liquidity within the stablecoin ecosystem. The report also highlighted strategic investments of over $5 billion across various sectors, including AI, renewable energy, and BTC mining. Despite concerns about the lack of a formal audit, Tether’s quarterly attestation reports offer insights into the company’s balance sheet, attested to by BDO, the fifth-largest accounting network globally.
Tether’s decision to invest part of its operating profits in Bitcoin has proven lucrative, with the company’s Bitcoin holdings reaching 75,300 BTC, valued at over $4.38 billion. The move to diversify its portfolio has contributed to Tether’s continued success despite market volatility. Tether remains confident in its financial position, with excess reserves totaling $6.3 billion to provide a buffer against potential risks. Despite Circle’s USDC surpassing Tether’s USDT in transaction volume, Tether remains dominant in the stablecoin market, commanding over 68% of the market with a market cap exceeding $100 billion.
Tether’s recent venture into the healthcare sector with a significant $200 million investment in Blackrock Neurotech, a leading biotech company specializing in brain-computer interface (BCI) technology, marks its first move into the healthcare industry. According to CoinStats, Tether has an unrealized profit of over 91% and is worth over $2 billion, despite Bitcoin’s recent fall below the $60,000 mark. Tether’s success in the stablecoin market and its strategic investments across various sectors demonstrate its commitment to growth and innovation in the cryptocurrency industry.
Overall, Tether Holdings has achieved a record net profit in the first quarter of 2024, driven by financial gains on Bitcoin and gold, as well as operating profits. The company’s commitment to transparency, stability, liquidity, and responsible risk management is evident in its attestation reports and strategic investments. Tether’s dominance in the stablecoin market, despite challenges from competitors like Circle’s USDC, showcases its strong position within the industry. Tether’s foray into the healthcare sector with a significant investment in Blackrock Neurotech demonstrates its willingness to explore new opportunities for growth and innovation.
