Tether nets $4.5B profit in Q1 2024 – mostly from bitcoin and gold

Tether Holdings, the company behind the world's largest stablecoin, Tether (USDT), has reported a net profit of $4.52 billion in the first quarter of 2024.

Tether reached $11.37 billion on March 31st. This represents a significant increase from the $7.01 billion in equity recorded at the end of December 2023, Tether Certificates reported for the first quarter. 2024

About $1 billion came from operating gains from U.S. Treasury holdings, with the remaining $3.52 billion from market-to-market gains in the company's Bitcoin (BTC) and gold positions.

Tether's USDT is the world's largest stablecoin, worth more than $110 billion, according to CoinMarketCap data. The company It spent $12.5 billion in the first quarter of 2024.

The report showed a $1 billion increase in the company's surplus reserves, which are kept as a buffer to support its stable coin offerings. Tether's excess reserves were just under $6.3 billion.

The report also found that more than $104 billion in liabilities were linked to “issued digital tokens,” and the value of Tether's reserve assets exceeded the value of its claims by more than $6.2 billion as of March 31.

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Tether remains the world's seventh largest holder of Bitcoin.

Tether's bitcoin wallet, “bc1q,” currently holds 75,354 BTC worth more than $4.38 billion, according to on-chain intelligence platform Arkham Intelligence.

Tether received 8,888 Bitcoin worth $626 million from Bitfinex on March 31st.

This makes Tether's “bc1q” address the seventh largest bitcoin holder, according to BitInfoCharts. The firm said that it will invest 15% of its net profit into Bitcoin to increase the stablecoin's supporting assets.

Despite bitcoin falling below $60,000, Tether is sitting on more than 91% gains, worth more than $2 billion, according to CoinStats portfolio tracker.

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