$5.2 Billion: Tether Reports Record Profit as Bitcoin Holdings Soar to 80,000 BTC

Leading stablecoin issuer Tether, the company behind the USDT token, has announced record-breaking profits of $5.2 billion for the first half of 2024. Simultaneously, they revealed a significantly expanded portfolio of U.S. government bonds, now valued at an estimated $97.6 billion.

According to a recent announcement, Tether’s ownership of U.S. Treasuries has reached an all-time high, surpassing holdings in Germany, the United Arab Emirates, and Australia. This surge reflects the growing popularity of USDT.

Tether currently ranks 18th among countries holding U.S. debt and is second only to the United Kingdom and the Cayman Islands in purchasing 3-month U.S. Treasuries—with the potential to become the top holder next year.

The company’s total reserves exceed $118 billion, further strengthening its financial position. The announcement also highlights the following details:

• In Q2 2024, despite a decline in BTC prices (accounting for -$653 million in unrealized PnL), Tether’s equity increased by $520 million. Positive gold performance (accounting for a positive $165 million in unrealized PnL) partially offset this growth.
• Tether’s consolidated net equity stood at $11.9 billion as of June 30. Notably, the company issued around $8.3 billion in USDT during the second quarter, demonstrating ongoing demand for this stablecoin.
• Tether has reinvested a portion of its profits in various sectors, including sustainable energy, Bitcoin mining, artificial intelligence infrastructure, neurotechnology, and peer-to-peer telecommunications.

Tether CEO Paolo Ardoino revealed on social media that the group currently holds approximately 80,000 Bitcoins, valued at around $5.1 billion. Last year, Tether committed to investing 15% of its realized net operating profits in the flagship cryptocurrency BTC.

Unlike traditional banks operating on a fractional reserve basis, Tether’s cryptocurrency is primarily backed by cash and short-term U.S. Treasury bills. As of writing, 3-month U.S. Treasuries yield around 5.28%.

Sentiment: Positive