Tether, the issuer of the most widely used stablecoin USDT, reported a record-breaking $5.2 billion net profit for the first half of 2024.
Points
- Tether reports a net profit of $5.2 billion for the first half of 2024.
- Financial growth driven by investments in US Treasury Bills.
- Tether’s reserves for circulating tokens totaled $118 billion.
- Profits reinvested in various projects to bolster the ecosystem.
Tether, one of the largest crypto companies in the industry and issuer of the most widely used stablecoin USDT, has released its attestation report for the first half of the year, recording substantial gains that amount to nearly $1 billion per month.
Transition to US Treasuries Pays Off
According to the report, independently audited by accounting firm BDO, Tether’s net operating profit for the second quarter of 2024 reached a new high of $1.3 billion, propelling the company’s total net profit for the first half of the year to over $5 billion.
According to the stablecoin issuer, the foundation of Tether’s financial growth and stability comes from an income base derived from investments in US Treasury Bills （T-Bills）, which was first implemented after eliminating commercial paper from its stablecoin reserves and replacing it with US T-Bills in 2022.
The report also revealed that in the second quarter of the year, direct and indirect ownership of US Treasuries within Tether’s token reserves made notable progress, surpassing $97.6 billion, resulting in a historic high in this metric. This brings Tether’s exposure to Treasuries across multiple countries, positioning it as the 18th largest holder of US debt globally and the 3rd largest purchaser of 3-month US Treasuries after the UK and the Cayman Islands.
Tether Commits Profits to Ecosystem Expansion
Despite fluctuations in Bitcoin （BTC） prices, which reached an all-time high of $73,700 in March, the report noted that consolidated equity increased by $520 million in the second quarter, with gold’s positive performance compensating for the losses. The company revealed that its consolidated net equity as of June 30 was $11.9 billion.
According to the financial disclosures, as of June 30, 2024, Tether’s reserves for circulating tokens totaled $118 billion, exceeding debt by $5.3 billion.
In a strategic move, the firm also revealed that a portion of the second quarter’s profits is going to be reinvested in “pivotal projects” to bolster Tether’s ecosystem, while a substantial excess reserve of $5.3 billion was maintained to fortify token stability.
Investments in sustainable energy, Bitcoin mining, artificial intelligence （AI） infrastructure, telecommunications technology, neurotechnology, education, and other long-term ventures were also part of the firm’s portfolio.
Paolo Ardoino, CEO of Tether, took to social media to celebrate the company’s growth and profitability recorded in the first half of the year, saying:
“Finally, we realize that our company grew and reached new, almost unimaginable, levels. It’s truly humbling to find ourselves in the position to build everything our imagination could dream. That’s why, for us, Tether is a Once-In-One-Hundred-Year Opportunity. And being a private company allows us to focus on the things that truly matter.”
解説
- Tether’s substantial financial gains highlight the effectiveness of its strategic shift to US Treasury Bills.
- The reinvestment of profits into various projects reflects Tether’s commitment to long-term ecosystem growth and stability.
- Tether’s strong financial performance positions it as a key player in the crypto industry, with significant influence and resources.