Tether’s First Half Net Profit Soars to Record $5.2 Billion
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Tether’s operating profit for the second quarter of 2024 also rose to a record $1.3 billion, the company said.
The attestation report, which reaffirms the accuracy of Tether’s consolidated financial figures was conducted by the global independent accounting firm BDO.
The company’s directly and indirectly held U.S. treasuries crossed $97.6 billion, setting a new all-time high.
Tether has released its attestation report for the first half of 2024. The USDT stablecoin issuer reported a record $5.2 billion net profit for the first half of the year, with operating profit for the second quarter also rising to an unprecedented $1.3 billion, the company said in a statement on Wednesday.
According to the report, Tether’s consolidated equity also rose to a record high of $11.9 billion as of June 30, 2024, with its directly and indirectly held US treasuries up to an all-time high of $97.6 billion.
Group equity saw an increase of $520 million, impacted by an unrealised accounting loss of $-653 million (due to lower BTC prices). This was partially offset by a positive performance from gold, which locked in an unrealised net profit of $165 million, Tether reported.
“This achievement brings Tether’s exposure to Treasuries above Germany, the United Arab Emirates, and Australia. While China and other countries have been recent net sellers of U.S. Treasuries, Tether positioned itself at 18th in the rankings of countries owning U.S. debt,” the company wrote in a statement.
The attestation report was conducted by the global independent accounting firm BDO, thus reaffirming the accuracy of Tether’s Consolidated Financial Figures and Reserves Report (CFFRR), which features a detailed breakdown of the company’s assets held in token reserves.
The report also states that Tether now ranks third in purchases of 3-month U.S. Treasuries behind the United Kingdom and the Cayman Islands, and expects to rise to the top of that list within a year given the rapid adoption of the USDT stablecoin.
Tether has been busy diversifying its portfolio this year, and the activity was also reflected in the latest report.
The company said investments made into sustainable energy, Bitcoin mining, data, AI infrastructure, P2P telecommunications technology, neurotech, education, and other long-term proprietary investments are not considered part of its reserves.
Commenting on the report, Paolo Ardoino, CEO of Tether said in a statement: “As shown in this latest report, Tether continues to shatter records with a new profit benchmark of $5.2 billion for the first half of 2024. With Tether Group’s own equity reaching $11.9 billion, Tether has achieved an impressive and unmatched financial strength enabling it to continue leading the stablecoin industry in stability and liquidity.”
Over the last three months, Tether invested $200 million in a biotech startup Blackrock Neurotech, taking a majority stake. The company also secured a $100 million placement into Bitcoin mining company Bitdeer and could put in an additional $50 million.
Last month, the company also launched Alloy by Tether (aUSDT), ushering in a new category of assets dubbed “tethered assets”. Alloy by Tether tracks the value of the US dollar and is over-collateralised by Tether Gold (XAUT).
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DraftKings Shuts Down NFT Business Amid Class Action Lawsuit
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DraftKings is facing a class action lawsuit, which alleges its NFTs are securities.
It comes amid increasing SEC security on crypto assets that infringe on US securities laws.
Players of the DraftKings fantasy sports game Rainmakers have been offered buyouts, the email said.
DraftKings is exiting the non-fungible token (NFT) business according to an email sent to customers on Tuesday. The sports gambling company said it is shutting down its NFT business effectively immediately citing legal developments.
“After careful consideration, DraftKings has decided to discontinue Reignmakers and our NFT Marketplace, effective immediately, due to recent legal developments. This decision was not made lightly, and we believe it is the right course of action,” the email said.
The announcement comes just weeks after a Federal judge allowed a class action lawsuit against DraftKings to continue on a “plausible pled” that DraftKings’ NFTs breached US securities laws.
The company joined the market during the NFT industry boom in 2021, with the view that in ten years, the NFT business “could become gigantic.”
However, although some of the OG players in the space like Yuga Labs have adapted to the changes in the industry a mid the crypto winter of the past two years, a lot of the mainstream brands have cooled down their activity.
DraftKings was one of the few mainstream players to remain active in the space via their NFT-powered fantasy sports game, Rainmakers.
But now, even that part of the business alongside the company’s NFT marketplace is shutting down with Rainmakers players offered buyouts. On the other hand, NFT collectors will be allowed to access and transfer their assets.
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Polychain and Lightspeed Co-Lead $7M Seed Round for Web3 AI Startup Hyperbolic
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The fundraising also attracted participation from Chapter One, LongHash, Bankless Ventures, Republic Digital, Nomad Capital, CoinSummer Labs, and Third Earth Capital.
The company plans to lower the cost of AI computing resources by aggregating GPU power.
Hyperbolic wants to build an AI ecosystem and economy that empowers all contributors.
Hyperbolic has secured a $7 million seed round co-led by Polychain Capital and Lightspeed Faction. The fundraising also attracted participation from Chapter One, LongHash, Bankless Ventures, Republic Digital, Nomad Capital, CoinSummer Labs, and Third Earth Capital.
The decentralised AI firm wants to lower the cost of AI computing by aggregating GPU power.
Former Coinbase chief technology officer Balaji Srinivasan, Illia Polosukhin of Near Protocol and Polygon’s Sandeep Nailwal were among those who joined as ange investors.
The Hyperbolic network is secured with blockchain technology, ensuring the authenticity and empowerment of all contributors.
Commenting on his company’s role in the decentralised AI market, Hyperbolic co-founder and CEO Jasper Zhang told The Block: “The ultimate goal of Hyperbolic is not to get bogged down in the minutiae of optimising AI service performance to compete with web2 companies. Instead, we aim to build an open AI ecosystem and economy that everyone can contribute to and benefit from.”
Hyperbolic claims that AI companies are spending as much as 80% of their capital computing power, which they rent from cloud service providers like Amazon Web Services, Google Cloud, and Microsoft Azure.
The challenge is the huge cost involved because of the shortage of GPU capacity and distribution bottlenecks.
Hyperbolic’s globally distributed network of GPU resources taps the aggregated compute power of millions of idle GPUs from around the world including GPU power from personal computers that are idle most of the day, as well as, from data centres.
Commenting on his firm’s leading role in the seed round, Polychain Capital founder and CEO Olaf Carlson-Wee said what Hyperbolic provides is an alternative to the “abuse of power” by a select few providers, Silicon Angle reported.
“Without this transparency, auditing profit-focused tech giants becomes exceedingly difficult,” Carlson-Wee said. “Hyperbolic envisions a future where distributed compute makes services like inference cheaper, enabling researchers and developers globally to experiment at larger scales.”
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zkLink Nova, an Ethereum layer 3 chain that launched in March 2024, saw its total value locked (TVL) surpass the $600 million mark at the end of July, reaching a new record at $635 million as of this writing, according to DefiLlama data.
The scaling solution aggregates liquidity across top Ethereum layer 2 networks, including Linea, zkSync, Arbitrum, Base, OP, and more.
zkLink Nova aims to bring interoperability and enhanced efficiency across Ethereum layer 2s, acting as a liquidity hub and one-stop solution for the Ethereum ecosystem. Additionally, it offers increased security through zero-knowledge (zk) proofs, adding a privacy layer to optimistic rollups like OP and Arbitrum, which are considered less secure and private compared to zk rollups.
At the end of July, the daily active users on zkLink Nova reached a new record, nearly hitting the 100,000 mark.
Thanks to its rapid increase, the layer 3 has become the 16th largest blockchain by TVL as per DefiLlama, surpassing established networks like Manta, Sui, Aptos, Starknet, Bitlayer, and Near.
zkLink Nova TVL Surge Driven by LayerBank
LayerBank, a decentralized finance (DeFi) lending platform, is the largest decentralized application on zkLink Nova. Its TVL is getting closer to the $1 billion mark, reaching a new record at $913 million on July 28 after gaining 580% over the last three months.
zkLink Nova accounts for about 60% of LayerBank’s TVL, with $555 million, surging over 100% in less than a month.
LayerBank positions itself as a one-stop solution for borrowing, lending, and swapping crypto. It combines the features of Aave, a top lending platform, and Uniswap, the largest decentralized exchange (DEX).
The protocol targets all Ethereum-compatible layer 2 networks. Besides zkLink Nova, it also supports Mode, Linea, Scroll, Manta, BOB, BSquared, and Bitlayer.
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Caldera 是一个 Web3 基础设施平台,专门帮助开发人员在以太坊上推出扩展解决方案和汇总,已获得由 Peter Thie 的 Founders Fund 领投的 1500 万美元 A 轮融资。此次融资还吸引了 Dragonfly、Sequoia Capital、Arkstream Capital、Lattice Fund 等公司的参与。