Tether, the issuer of the leading stablecoin USDT, announced its accounting visa report (attestation) for the second quarter of 2024 on July 31. In addition to revealing the company's financial status, it also provides the most important asset reserve report (CFRRR) for stablecoins.
The data below is as of June 30, 2024.
Profit hits record high, outlook for next year largest holder of short-term U.S. debt
Profit reached a record high of $5.2 billion in the first half of 2024, and net operating profit was $1.3 billion. Tether said: "Mainly due to a strong and sustained income base from traditional asset class investments (mainly U.S. Treasury bonds), part of the proceeds will be reinvested into strategic investments and the ecosystem."
Tether will no longer invest in the mining industry
In the past, Tether’s investments were mostly focused on miners and payments, but this time it stated in a press release that it was not considering investing in Bitcoin mining, peer-to-peer communication technology and other fields. Tether has invested four times this year. The most recent was with Taiwanese exchange XREX in early June. The company’s direct and indirect holdings in U.S. Treasuries exceed $97.6 billion, surpassing countries such as Germany, the United Arab Emirates, and Australia. Ranked 18th among countries that own U.S. Treasuries; and third-largest in purchases of 3-month U.S. Treasuries, after the United Kingdom and the Cayman Islands. Tether even stated in its official press release: “Considering the development of USDT, it has the potential to become the number one next year.”
Excess reserves of US$5.3 billion, diversified investments enable stable asset growth
Looking at the token issuance portion, USDT issuance in the second quarter was $8.3 billion. The current total market value reaches US$114.4 billion, with a market share of about 70% in the stable currency market. The current net assets are as high as US$11.9 billion. In addition to bonds, funds, corporate bonds, metals and some cash, he holds about 80,000 Bitcoins. As for the most important excess reserve part of stablecoins, the company currently has US$5.3 billion in excess reserves to ensure currency stability. The group's equity increased by 520 million in the second quarter. Although the current book floating loss of holding Bitcoin is about 653 million US dollars, it is also partially offset by the book floating profit of 165 million US dollars in gold. It is obvious that the company has carried out risk management in its investment portfolio and hedged the risks of volatile assets such as Bitcoin by holding stable assets such as gold.
Although the accounting visa report for the second quarter looks good, with stable earnings and record high revenue. He even threatened to become the largest holder of U.S. short-term Treasury bonds next year. However, Tether is currently under attack from the EU MiCA Act and the US Stable Currency Act. Perhaps rather than rapid expansion, surviving from regulation will be what Tether should face next.
(Circle becomes the first MiCA-compliant stablecoin merchant, will Tether’s leading position be shaken?)
Tether will enter the RWA market
Tether once announced that it would enter RWA (real world assets). On 8/2, the CEO said that the asset tokenization platform is about to be named.
We found the perfect name for @Tether_to upcoming digital asset tokenization platform!
— Paolo Ardoino (@paoloardoino) August 2, 2024
This article Tether 2024 second quarter accounting visa is out! What else can we see besides record profits? First appeared in Chain News ABMedia.