Tether Reports Record $5.2 Billion Profit in First Half of 2024, Expands Treasury Holdings
Tether Holdings Limited, the company behind the world’s largest stablecoin USDT, has announced unprecedented financial results for the first half of 2024. According to its latest quarterly attestation report conducted by BDO, a leading global independent accounting firm, Tether achieved a record-breaking net profit of $5.2 billion for the first six months of the year.
The second quarter of 2024 proved particularly strong for Tether, with the company reporting a net operating profit of $1.3 billion. This impressive performance has been largely attributed to Tether’s investments in traditional asset classes, primarily U.S. Treasuries.
In a significant milestone, Tether’s direct and indirect ownership of U.S. Treasury bills surpassed $97.6 billion, marking a new all-time high. This substantial holding positions Tether above several sovereign nations in terms of U.S. debt ownership, including Germany, the United Arab Emirates, and Australia. The company now ranks 18th among countries owning U.S. debt and third in purchases of 3-month U.S. Treasuries, trailing only the United Kingdom and the Cayman Islands.
The attestation report also revealed that Tether’s consolidated net equity reached $11.9 billion as of June 30, 2024. This figure takes into account a $653 million unrealized loss due to Bitcoin price fluctuations, partially offset by a $165 million unrealized gain from gold investments.
Tether CEO Paolo Ardoino commented on the results, stating, “Tether has once again demonstrated its unwavering commitment to transparency, stability, liquidity, and responsible risk management.” He emphasized the company’s financial strength and its potential to lead in various sectors beyond stablecoins, including artificial intelligence, biotech, and telecommunications.
Despite these positive results, questions have arisen regarding Tether’s Bitcoin holdings. The attestation shows Tether holding 75,354 Bitcoin in Q2 2024, unchanged from Q1, which appears to contradict a statement from Ardoino claiming the company now holds 80,000 Bitcoin.
The company reported that its reserves for Tether tokens in circulation amount to $118.4 billion, while its liabilities stand at $113.1 billion. This results in excess reserves of approximately $5.3 billion.
As Tether continues to grow, it faces ongoing scrutiny from regulators and industry observers. The company’s history includes a settlement with the New York Attorney General’s office in 2021 over allegations of false statements regarding USDT’s backing. However, the recent financial performance and increased transparency measures appear to be bolstering Tether’s position in the cryptocurrency market.
