Tether Reports Record $5.2 Billion Profit in H1 2024, Achieves Highest Treasury Bill Ownership
Zach Anderson Jul 31, 2024 16:35
Tether's Q2 2024 attestation reveals a record $5.2 billion profit in the first half of 2024, highest-ever treasury bill ownership, and almost $12 billion in consolidated equity.
Tether Holdings Limited has released its assurance opinion for the second quarter of 2024, conducted by BDO, a leading global independent accounting firm. According to Tether, the attestation reaffirms the accuracy of Tether’s Consolidated Financials Figures and Reserves Report (CFFRR), providing a detailed breakdown of the assets held as token reserves and key consolidated financial figures as of June 30, 2024.
Record-Breaking Financial Performance
Building on the momentum from Q1 2024, Tether reported a net operating profit of $1.3 billion for Q2 2024, culminating in a record net profit of $5.2 billion for the first half of the year. The company attributes this performance to a strong and persistent revenue base from traditional asset-class investments, primarily U.S. Treasuries.
Unprecedented Treasury Bill Ownership
Q2 2024 also saw Tether achieve an unprecedented level of direct and indirect ownership of U.S. Treasuries, surpassing $97.6 billion. This milestone places Tether above Germany, the United Arab Emirates, and Australia in terms of U.S. debt ownership. Tether now ranks 18th among countries owning U.S. debt and 3rd in purchases of 3-month U.S. Treasuries, following the United Kingdom and the Cayman Islands. Given the trajectory of USDt adoption, Tether anticipates potentially becoming the top holder within the next year.
Consolidated Equity and Transparency
In Q2 2024, Tether’s Group Equity increased by $520 million, despite a drop in BTC prices accounting for a $653 million unrealized loss, which was partially offset by a positive performance in gold, contributing $165 million in unrealized gains. Tether’s consolidated net equity reached an impressive $11.9 billion as of June 30, 2024.
Part of the profits from Q2 were reinvested into strategic projects to support the ecosystem, while maintaining $5.3 billion in excess reserves to ensure the stability of its token. Over $8.3 billion in USDt was issued during this period, reaffirming Tether’s strong financial position, with consolidated assets exceeding consolidated liabilities.
Key Financial Metrics
As of June 30, 2024, the following key financial metrics were reported:
- The reserves for Tether tokens in circulation amounted to $118,436,336,293.
- The liabilities of the companies issuing Tether tokens were $113,101,998,938, with $112,395,445,973 related to digital tokens issued.
- The value of the assets composing the reserves exceeded the liabilities by $5,334,337,355.
- Investments in sustainable energy, Bitcoin mining, data, AI infrastructure, P2P telecommunications technology, neurotech, education, and other long-term proprietary investments are not considered part of the reserves backing the issued tokens.
Paolo Ardoino, CEO of Tether, stated, “With the second quarter attestation of 2024, Tether has once again demonstrated its unwavering commitment to transparency, stability, liquidity, and responsible risk management. 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 as well as to bring its expertise across different areas such as Artificial Intelligence, Biotech, and Telecommunications.”
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