Tether has reported an impressive net profit of $5.2 billion for the first half of 2024.
Make it rain
The newest published audit report confirms Tether’s financial strength, detailing their reserves and assets as of June 30th. We see records in the books.
In the second quarter alone, Tether achieved a net operating profit of $1.3 billion, marking their best quarterly result to date.
This performance brought their total profit for the first half of the year to a record $5.2 billion.
CEO Paolo Ardoino shared Tether’s financial resilience and leadership in the stablecoin industry, and also noting their expansion into areas such as Artificial Intelligence, Biotech, and Telecommunications to diversifying their revenue streams.
Tether holds Treasuries, and the yield is nice
As we see from the report, Tether’s robust revenue is largely derived from U.S. Treasuries.
In Q2 2024, their holdings in U.S. Treasuries surged to $97.6 billion, positioning them as the 18th largest holder of U.S. debt globally.
This position places Tether ahead of countries like Germany and Australia, so it’s kind of a milestone.
While other nations, including China, have been selling U.S. Treasuries, Tether has been increasing their holdings.
They are now the third-largest buyer of 3-month U.S. Treasuries, following the UK and Cayman Islands.
With the increasing adoption of their USDt stablecoin, Tether may soon become the largest holder.
Tether liabilities are now backed by more than 100%
Tether’s Group Equity grew by $520 million in Q2 2024, despite a $653 million loss from declining Bitcoin prices, which was partially offset by a $165 million gain from gold.
The stablecoin issuer’s consolidated net equity now stands at $11.9 billion. Part of Tether’s Q2 profits was reinvested into strategic projects to support their own ecosystem.
They also maintained $5.3 billion in excess reserves to ensure the stability of their token.
In Q2 2024, the company issued over $8.3 billion in USDT, and their Consolidated Financials Figures and Reserves Report shows that their assets exceed their liabilities.
As of June 30th, Tether’s reserves for tokens in circulation totaled $118.4 billion, with liabilities at $113.1 billion, leaving them with an excess of $5.3 billion in assets over liabilities.
