Tether Holdings, the company responsible for the largest stablecoin in the world, Tether (USDT), has announced a record net profit of $4.52 billion in the first quarter of 2024.
In addition, Tether has disclosed its net equity for the first time, revealing a total of $11.37 billion as of March 31. This is a significant increase from the $7.01 billion in equity reported at the end of December 2023, according to Tether’s attestation report for Q1 2024.
Of the total net profit, approximately $1 billion came from operating profits generated from United States Treasury holdings, while the remaining $3.52 billion consisted of market-to-market gains from the company’s Bitcoin (BTC) and gold positions.
Tether’s USDT is the largest stablecoin globally, with a value exceeding $110 billion according to CoinMarketCap data. The company issued $12.5 billion worth of USDT in the first quarter of 2024.
The report also revealed a $1 billion increase in excess reserves, which serve as a buffer to support Tether’s stablecoin offerings. Tether’s excess reserves now amount to just under $6.3 billion.
The report further disclosed liabilities of over $104 billion related to “digital tokens issued,” while the value of Tether’s reserve assets exceeded its liabilities by over $6.2 billion as of March 31.
In terms of Bitcoin holdings, Tether’s Bitcoin wallet, “bc1q,” currently holds 75,354 BTC, with a value surpassing $4.38 billion, according to on-chain intelligence platform Arkham Intelligence. Tether acquired 8,888 Bitcoin worth $626 million from Bitfinex on March 31.
This makes Tether’s “bc1q” address the seventh-largest Bitcoin holder, according to BitInfoCharts. The company has announced plans to invest 15% of its net profit into Bitcoin to diversify the assets backing its stablecoin.
Despite Bitcoin’s decline below the $60,000 mark, Tether has an unrealized profit of over 91%, amounting to more than $2 billion, according to the CoinStats portfolio tracker.
In related news, losses from crypto hacks decreased by 67% in April to $60 million.