Stablecoin leader Tether has shared its first-quarter earnings. The company announced a net profit of $4.52 billion, backed by the US Treasury and Bitcoin. Tether, the company behind the widely used stablecoin USDT, said that there was a 61% increase from the previous quarter in the first quarter of 2024, marking a record net profit of $4.52 billion.
According to the first-quarter report, significant gains were primarily due to the company's investments in US Treasury bonds and the appreciation of its Bitcoin and gold reserves. As of March 31, 2024, Tether's net equity rose to $11.37 billion.
Tether, the Market's Most Valuable Stablecoin
The company's strategic allocation of over $90 billion in US Treasury bonds made a significant contribution to the profit surge. According to CoinGecko, Tether's financial performance maintains a 1:1 value with the US dollar and has a market capitalization of approximately $110 billion. The company said it issued 12 billion new USDT tokens in the first quarter.
The value of the company's Bitcoin assets doubled to $5.4 billion. Gold reserves increased to $3.7 billion. Tether has not completed an official audit. Instead, it provides a quarterly attestation reporting $6.3 billion in excess reserves and $4.7 billion in secured loans. Tether's financial infrastructure extends beyond stablecoins with ventures in data, technology, and mining and energy sectors.