Tether, the company behind the widely-used stablecoin USDT, has reported a record US$4.52 billion net profit for the first quarter of 2024, a 61% increase from the previous quarter.
The substantial earnings were primarily driven by the company’s investments in US Treasury bonds and the appreciation of its Bitcoin and gold reserves, according to the firm’s Q1 attestation.
As of March 31, 2024, Tether’s net equity has surged to US$11.37 billion.
The company’s strategic allocation of over US$90 billion in US Treasury bonds has been a significant contributor to the profit leap.
The financial performance of Tether hints at a possible strong backing for USDT, which maintains a 1:1 value with the U.S. dollar and has a market capitalization of approximately US$110 billion, according to CoinGecko.
The company said it issued 12 billion new USDT tokens in the first quarter.
The company’s Bitcoin holdings have doubled in value, reaching US$5.4 billion, and its gold reserves have increased to US$3.7 billion.
Tether has not completed a formal audit. Instead, it provides quarterly attestation that reports US$6.3 billion in excess reserves and US$4.7 billion in secured loans.
Tether’s financial infrastructure extends beyond stablecoins, with ventures in data, technology, and the mining and energy sectors.