Tether reported a record $4.52 billion profit for Q1 2024, significantly increasing its net equity to $11.37 billion, driven by its US Treasury investments.
Tether, the entity behind the leading stablecoin USDT, reported a record net profit of $4.52 billion for the first quarter of 2024, primarily driven by gains from its substantial US Treasury holdings. This performance marks a significant financial milestone for the company, showcasing its adept management of a diverse asset portfolio amid volatile market conditions.
Tether's profits surged by 61% compared to the previous quarter, attributed to strategic investments in US Treasury bonds, which currently exceed $90 billion. As of March 31, 2024, Tether’s net equity stood at $11.37 billion, a sharp increase from the $7.01 billion recorded at the end of 2023.
Such a robust equity base gives Tether a significant buffer to maintain its currency peg and financial stability. Tether’s reserves, critical to backing its stablecoin USDT, are predominantly in cash and cash equivalents, constituting about 90% of its holdings.
Paolo Ardoino, CEO of Tether, emphasized the company's commitment to transparency and trust, stating, "In reporting not just the composition of our reserves, but now the Group’s net equity of $11.37 billion, Tether is again raising the bar in the cryptocurrency industry."This high liquidity ratio is pivotal for Tether, allowing it to meet withdrawal demands swiftly and maintain a stable valuation for its stablecoin. Despite previous controversies regarding reserve transparency, Tether has taken substantial steps to demonstrate its financial health and clear doubts.
