The issuer of the world’s largest stablecoin, Tether, achieved significant financial success in the first quarter of 2024. Tether announced that it made a record net profit of $4.52 billion during this period, indicating strong financial growth and solidifying its powerful position in the cryptocurrency world.
Net Equity of $11.37 Billion
Tether disclosed that its net equity stood at $11.37 billion as of March 31, marking a substantial increase from $7.01 billion recorded at the end of December 2023. This figure was confirmed in the audit report for the first quarter of 2024.
Furthermore, the company indicated that its high net profit came from various sources. Approximately $1 billion of the profit was attributed to operational gains from diversified investment strategies and assets held in U.S. Treasuries. A significant portion of $3.52 billion was attributed to market-to-market gains from positions in Bitcoin and gold.
As a major player in the stablecoin market, Tether’s USDT holds a significant presence with a market value exceeding $110 billion according to the cryptocurrency data and price platform CoinMarketCap. Additionally, the issuance of $12.5 billion worth of USDT in the first quarter further strengthened Tether’s position in the cryptocurrency market.
Reserve Surplus Reaches $6.3 Billion
Tether’s commitment to financial stability is evidenced by the prudent management of excess reserves. The report shows a notable increase of $1 billion in the reserve surplus, which serves as a protective buffer to maintain the integrity of its stablecoin products. Consequently, Tether’s reserve surplus reaching $6.3 billion demonstrates the company’s strategic approach in risk management.
Moreover, the company’s disclosure of liabilities exceeding $104 billion related to “issued cryptocurrencies” is a result of its commitment to transparency and accountability. More importantly, the value of Tether’s reserve assets exceeding its liabilities by over $6.2 billion highlights the company’s strong financial position and its ability to meet its obligations.
