Tether Q1 2024 Financials Surge on Stablecoin Issuance and Reserve Management

In Q1 2024, stablecoin issuer Tether reported strong financial performance, with a net profit of $4.52 billion and an increase in direct and indirect US Treasury holdings to over $90 billion. BDO's audit confirmed Tether's tokens are backed by 90% cash and equivalents, reinforcing the company's commitment to liquidity and stability in the stablecoin market.

Tether Reports Record Q1 2024 Financial Performance, Bolstered by Stablecoin Issuance and Reserve Management

Tether, the leading stablecoin issuer in the cryptocurrency market, has released its audited financial statement for the first quarter of 2024, revealing a strong financial performance characterized by a surge in profitability and strategic investment.

The audit, conducted by renowned accounting firm BDO, underscores Tether's commitment to transparency and its role as a stabilizing force in the digital asset ecosystem.

Impressive Financial Results

Tether's impressive financial performance in Q1 2024 was driven by a net profit of $4.52 billion, primarily derived from entities responsible for stablecoin issuance and reserve management. Approximately $1 billion of this profit stemmed from net operational gains, notably from its substantial holdings of US Treasury securities. The remaining profit was attributed to mark-to-market gains on Bitcoin and gold positions.

Strategic Investments and Growth

Tether's strategic approach during the quarter included a significant increase in both direct and indirect US Treasury holdings, surpassing $90 billion. This involved indirect exposure through overnight reverse repurchase agreements secured by US Treasuries and investments in US Treasuries through money market funds.

For the first time, Tether disclosed its net equity, which stood at $11.37 billion as of March 31, 2024, a notable increase from the $7.01 billion reported at the end of 2023. Excess reserves supporting stablecoin offerings also increased by $1 billion, totaling nearly $6.3 billion.

Commitment to Transparency and Stability

BDO's audit confirms that Tether-issued tokens are 90% backed by cash and equivalents, reaffirming Tether's unwavering commitment to liquidity and stability in the stablecoin market. During the first quarter, over $12.5 billion worth of USDT was issued, underscoring the high demand for Tether's stablecoins.

Tether's strategic investments, totaling over $5 billion, span a diverse range of sectors, including artificial intelligence, renewable energy, person-to-person communication, and Bitcoin mining.

CEO Emphasizes Transparency and Prudent Risk Management

Commenting on the financial results, Tether CEO Paolo Ardoino emphasized the company's unwavering commitment to transparency, stability, liquidity, and prudent risk management. He highlighted Tether's record-breaking profit and ongoing efforts to enhance transparency and trust within the cryptocurrency industry.

"We are proud of our financial performance in the first quarter of 2024, which is a testament to our commitment to providing a reliable and stable digital asset for users worldwide," said Ardoino. "We remain steadfast in our mission to foster transparency and accountability in the cryptocurrency space and to continue building a robust and sustainable ecosystem."