Tether Holdings, the company behind the world’s largest stablecoin USDT, has reported a record net profit of $4.52 billion in the first quarter of 2024. This was announced in their recent quarterly report. Also notable is that the company’s net equity has been publicly revealed for the first time and stood at $11.37 billion as of March 31. This is a sharp increase from the $7.01 billion at the end of 2023.

Large portion of profits earned through market-to-market gains

About $1 billion of the profit came from operations involving U.S. government bonds, while $3.52 billion came from market-to-market gains on the company’s Bitcoin and gold holdings. According to CoinMarketCap, USDT remains the dominant stablecoin with a market value exceeding $110 billion. In this quarter, Tether issued $12.5 billion in new USDT.

The company also reported a $1 billion increase in excess reserves, which serve as a cushion to support the stablecoin’s supply, with total excess reserves now nearing $6.3 billion.

Furthermore, the report showed that Tether had more than $104 billion in liabilities towards “issued digital tokens.” However, the value of Tether’s reserves exceeded these liabilities by more than $6.2 billion as of March 31.

75.354 Bitcoin in Tether’s BTC-wallet

Tether’s Bitcoin wallet, known as ‘bc1q’, currently holds 75,354 BTC, worth approximately $4.38 billion, according to insights from on-chain intelligence platform Arkham Intelligence. On March 31, Tether purchased another 8,888 Bitcoin for $626 million from Bitfinex, making Tether’s ‘bc1q’ address the seventh largest Bitcoin holder according to BitInfoCharts.

Despite Bitcoin’s recent drop below $60,000, Tether is showing an unrealized gain of over 91%, amounting to over $2 billion, according to CoinStats. Tether has indicated it will invest 15% of its net profits in Bitcoin to increase the diversity of its stablecoin’s supporting assets.

Source: https://newsbit.nl/tether-holdings-boekt-recordnettowinst-en-verhoogt-vermogen-aanzienlijk/

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