Tether Hits $5.2B H1 Profit to Surpass Germany’s US Treasury

• Tether (USDT) makes a strong positive financial move, building on its historic $5.2 billion net profit in Q1 2024 to record a net operating profit of $1.3 billion in Q2 2024. 

• The company discloses its plans to reinvest part of the profit in strategic projects to stabilize its native token. 

Tether Holdings Limited clocks a historic milestone with a $5.2 billion net profit benchmark in the first half of 2024 (Q1 2024). In addition, the Tether Group’s equity reached $11.9 billion within the period, flexing its financial strength through relentless transparency, stability, and liquidity.

In the first quarter, its USDT on the TRON network also triggered an increase in underlying on-chain activities, pushing its volume to $53 billion to outpace that of VISA ($43 billion) as we formerly highlighted. 

According to the data announced by the CEO of Tether Paolo Ardoino, the company has achieved an impressive record, cementing its dominance in the stablecoin industry and extending its expertise across different areas. 

Building on this, the company extended its impressive run to the second quarter of the year (Q2 2024) with a net operating profit of $1.3 billion. Interestingly, the Q2 2024 Attestation attributes this strong financial strength to the “persistent revenue base from traditional asset-class investment”, specifically, the US Treasury. 

More on the Tether Q2 2024 Attestation

According to the report, the Group Equity saw an impressive increase to $520 million despite the unexpected pullback of the Bitcoin (BTC) price accounting for -$653 million of unrealized Profit and Loss (PnL). Fortunately, this negative outcome was offset by gold’s performance, which also accounted for a positive $165 million of unrealized PnL. As of June 30, 2024, its consolidated net equity was around $11.9 billion. 

To maintain a sizable amount of excess reserves for the stability of its token (USDT), part of the Q2 2024 profit was reinvested in strategic projects according to the report. 

Among the notable positive runs recorded within the period are the direct and indirect ownership of the US Treasuries, surpassing $97.6 billion to reach an all-time high. This implies that Tether’s Treasuries currently stand above that of Germany, the United Arab Emirates, and Australia. On top of that, it ranks third in the purchase of 3-month U.S. Treasuries, just behind the United Kingdom and the Cayman Islands.

An excerpt of the report reads:

In the second quarter, over $8.3 billion in USDt was issued. The Consolidated Financials Figures and Reserves Report (CFFRR) reiterates Tether’s strong financial position, with consolidated assets surpassing consolidated liabilities.

As of the period under review (June 30, 2024), the reserves for Tether tokens in circulation were approximately $118.4 billion. With this, the liabilities of the companies issuing Tether tokens amounted to $113 billion. Out of this, $112 billion is related to digital tokens issued. 

The Group is not considering a part of its reserves backing the issued token the investments made into sustainable energy, Bitcoin mining, data, AI infrastructure, P2P telecommunications technology, neurotech, education, and other long-term proprietary investments.

Outside the bracket of its financial strength, Tether embarked on several key initiatives in Q2 2024, including the expansion to focus on AI, finance, mining, and education, as we earlier reported. 

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