According to CryptoPotato, earlier this week, Tether, the largest stablecoin issuer, announced a net profit of $4.52 billion in the first quarter of 2024. Tether has recently expanded its business scope, but most of its profits still come from its long-term businesses rather than newly established departments.
Tether revealed in a statement that approximately $1 billion of its profits in the first quarter of 2024 came from entities responsible for issuing stablecoins and managing related reserves. In mid-April, Tether announced that it would expand its framework beyond stablecoins and launch new departments, including Tether Edu, Tether Power, and Tether Data, which will be responsible for digital skills education, sustainable Bitcoin mining operations, and strategic investments in emerging technologies. Tether Finance will continue to lead the company's stablecoin products and financial services.
Tether revealed that the division’s $1 billion profit last quarter came primarily from net operating profit on its U.S. Treasury holdings. During the quarter, Tether increased its direct and indirect holdings of U.S. Treasuries through money market funds and overnight reverse repurchase agreements. The remainder of Tether’s profit for the first quarter of 2024 came from mark-to-market gains on the company’s Bitcoin and gold positions. Notably, the company now holds more than $90 billion in U.S. Treasuries.