Tether Reports Record $13 Billion Profit for 2024, Bitcoin and Gold Holdings Surge

Tether, the issuer of the world's largest stablecoin, USDT, has reported a record-breaking $13 billion profit for 2024

Tether (USDT), the issuer of the world’s largest stablecoin, has announced a record-breaking profit of $13 billion for 2024, showcasing the company's financial strength amidst the surging prices of Bitcoin and gold.

According to the latest financial report, a substantial portion of Tether's profits, amounting to $7 billion, can be attributed to U.S. Treasuries and repo holdings, which serve as the foundation of its reserve base. This performance is further bolstered by an additional $5 billion in unrealized appreciation from Tether's Bitcoin and gold assets, highlighting the significance of these key investments. Moreover, the company's other investments also contributed $1 billion to its overall earnings.

To ensure transparency and attest to the company's asset reserves, Tether undergoes regular quarterly attestations. The latest attestation, conducted by BDO Italy, confirms that Tether holds $143.7 billion in assets to back its USDT stablecoins. This amount surpasses the $136.6 billion in liabilities, resulting in a surplus of $7 billion in reserves. Notably, Tether's treasury bills reserves have increased to $94.5 billion, showcasing its capacity to meet redemption demands and maintain financial stability.

Despite facing regulatory challenges, USDT remains the fourth-largest cryptocurrency by market capitalization, which currently stands at $140 billion. Tether's stablecoin plays a crucial role in digital asset trading, particularly in developing regions where it is extensively utilized for payments, remittances, and savings in U.S. dollars.

However, Tether's market presence faces headwinds in Europe, where certain exchanges, including Crypto.com and Kraken, have delisted or announced plans to suspend USDT for European Union users in response to MiCA regulations. These regulatory changes have led to a reduction in the token's supply, impacting its use within the EU.

As Tether continues to expand its reserves, including increasing its Bitcoin holdings, the company remains a major player in the cryptocurrency landscape. While challenges related to regulatory compliance and market dynamics persist, Tether's ability to adapt and maintain a strong financial position suggests it will continue to be a key player in the evolving global cryptocurrency ecosystem.