Tether's $5.2 billion H1 profit sets new high as US treasury holdings surpass Germany

08/01/2024 01:45
Tether's $5.2 billion H1 profit sets new high as US treasury holdings surpass Germany

Tether reported a record net profit of $5.2 billion for the first half and $1.3 billion for the second quarter of the year.

Tether’s $5.2 billion H1 profit sets new high as US treasury holdings surpass Germany Tether’s $5.2 billion H1 profit sets new high as US treasury holdings surpass Germany 1 min ago · 2 min read

The firm reported a net operating profit of $1.3 billion in the second quarter, marking its highest quarterly profit to date. 

2 min read

Updated: Jul. 31, 2024 at 7:08 pm UTC

Tether’s $5.2 billion H1 profit sets new high as US treasury holdings surpass Germany

Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.

Tether Holdings announced a record-breaking net profit of $5.2 billion for the first half of 2024. according to its recently released second-quarter attestation conducted by BDO, a leading global independent accounting firm.

Meanwhile, the firm reported a net operating profit of $1.3 billion in the second quarter, marking its highest quarterly profit to date.

The increase in profitability resulted primarily from traditional asset-class investments, mainly US Treasuries, which pushed Tether’s direct and indirect ownership to over $97.6 billion.

This amount places Tether’s treasury holdings above those of countries like Germany, the UAE, and Australia, ranking it 18th globally in terms of US debt ownership. Meanwhile, the firm ranks 3rd in purchases of 3-month US Treasuries after the UK and the Cayman Islands

Tether’s consolidated equity reached $11.9 billion as of June 30, reflecting an increase of $520 million from the first quarter. This was despite a $653 million unrealized loss due to a decline in Bitcoin prices, which was partially offset by a $165 million unrealized gain from gold investments.

Stablecoin reserve

Tether issued over $8.3 billion in USDT during the second quarter and maintains a reserve surplus of $5.3 billion as of the end of June to ensure the stability of its tokens.

The attestation reaffirms the accuracy of Tether’s Consolidated Financials Figures and Reserves Report (CFFRR), highlighting that the value of the reserves backing Tether tokens in circulation exceeds liabilities by $5.33 billion.

As of June 30, the reserves for Tether tokens totaled $118.44 billion, while liabilities stood at $113.10 billion — $112.40 billion of which is related to issued digital tokens.

Tether reinvested profits into various projects, including sustainable energy, Bitcoin mining, data, AI infrastructure, P2P telecommunications technology, neurotech, and education, highlighting its commitment to innovation and long-term growth.

The second quarter report also emphasizes Tether’s financial position, with consolidated assets surpassing consolidated liabilities. The independent auditors’ report from BDO confirms that the Consolidated Financials Figures and Reserves Report are fairly presented and free from material misstatement.

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