Tether Reports $4.52 Billion "Profit" in Just First Quarter of 2024

On the evening of May 1st, 2024, Tether (USDT), the stablecoin issuer, released its financial report for Q1/2024 audited by BDO, a leading global independent audit firm.

Specifically, within the first three months of 2024, Tether recorded a net profit of $4.52 billion — a record-breaking figure in the company's history. This includes:

Nearly $1 billion in earnings from holding U.S. Treasury Bills (T-Bills).
$3.52 billion in remaining profits reported from investments in Bitcoin and Gold.
As part of its commitment to transparency, Tether disclosed its net owner's equity for the first time, reaching an impressive $11.37 billion as of March 31, 2024. This marks a significant increase from the $7.01 billion in owner's equity reported in Q4/2023.

The latest audit report as of March 31, 2024, not only disclosed Tether's profits but also revealed additional information regarding the reserve holdings backing their stablecoin products pegged to their fiat equivalents.

BDO confirmed that tokens issued by Tether are backed by Cash and Cash Equivalents up to 90%. Tether holds $110.28 billion in assets to collateralize the $110.54 billion USDT in circulation, including:

The largest portion remains in U.S. Treasury Bills, totaling over $92.6 billion (both direct and indirect holdings).
Additional reserve funds to support stablecoins increased by $1 billion, totaling nearly $6.3 billion.
$3.65 billion in gold bullion.
$5.37 billion in Bitcoin.
$3.8 billion in other investments, along with $4.73 billion in external loans.
Strategic investments by Tether total over $5 billion as of the reporting date, encompassing various sectors such as Artificial Intelligence (AI) and Data (Tether Data), Renewable Energy, P2P transaction infrastructure, and Bitcoin mining (Tether Power).

Paolo Ardoino, CEO of Tether, highlighted that while these strategic investments were not detailed in the latest report, they continue to demonstrate Tether's commitment to transparency, stability, and responsible financial management.

"With Tether's first real-time financial report of 2024, we've demonstrated our steadfast commitment to transparency, stability, liquidity, and responsible risk management. Tether continues to set new records with a reported profit of $4.52 billion, reflecting the financial strength and absolute stability of the company."

Tether remains the largest issuer of stablecoins in the cryptocurrency market, with a record total supply of over 110 billion USDT. In Q1/2024 alone, more than 12.5 billion USDT were issued into circulation.

The market capitalization of the USDT stablecoin reached $110.5 billion on May 1st, 2024. Image: CoinMarketCap