Tether Reports Record-Breaking Profits in First Half of 2024
Tether, a prominent player in the crypto industry and the issuer of the widely-used stablecoin USDT, recently released its attestation report for the first half of the year. The report showcased impressive financial gains, with monthly profits nearing $1 billion.
Transitioning to US Treasuries Drives Financial Success
As per the report, audited by the reputable firm BDO, Tether’s net operating profit for the second quarter of 2024 skyrocketed to a remarkable $1.3 billion. This achievement propelled the company’s total net profit for the first half of the year above $5 billion.
- The foundation of Tether’s financial growth stems from investments in US Treasury Bills (T-Bills)
- In 2022, Tether shifted from commercial paper to US T-Bills, bolstering stability
Tether’s Increased Holdings in US Treasuries
The report highlighted that Tether’s direct and indirect ownership of US Treasuries recorded significant growth, surpassing $97.6 billion in the second quarter of the year. This surge marks a historic peak for the company in this area.
- Tether ranks as the 18th largest holder of US debt worldwide
- The company is the 3rd largest purchaser of 3-month US Treasuries after the UK and the Cayman Islands
Boosting Consolidated Equity Amid BTC Price Fluctuations
Despite fluctuations in Bitcoin’s value, with prices hitting an all-time high of $73,700 in March, Tether managed to increase its consolidated equity by $520 million in the second quarter. Positive performance in gold investments offset losses, leading to a consolidated net equity of $11.9 billion as of June 30.
Tether’s Profit Allocation for Ecosystem Expansion
By the end of June 2024, Tether’s reserves for circulating tokens totaled $118 billion, surpassing debt by $5.3 billion. In a strategic move, the company plans to reinvest a portion of its profits from the second quarter into essential projects aimed at enhancing Tether’s ecosystem.
- A surplus reserve of $5.3 billion is in place to ensure token stability
- Investments planned in sustainable energy, Bitcoin mining, AI infrastructure, and other long-term ventures
Celebrating Growth and Success
Paolo Ardoino, CEO of Tether, expressed his excitement on social media regarding the company’s remarkable growth and profitability in the first six months of the year. He emphasized the monumental opportunity that Tether represents and the company’s ability to focus on meaningful initiatives due to its private nature.
Hot Take: Tether’s Path to Financial Success
In conclusion, Tether’s strategic shift to US Treasuries has proven to be immensely profitable, with the company reporting record-breaking profits in the first half of 2024. This move, coupled with smart investment decisions and a focus on ecosystem expansion, has solidified Tether’s position as a key player in the crypto industry.
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