Stablecoin issuer Tether, a significant player in the cryptocurrency market, has disclosed its audit statement for the first quarter of 2024. The report, issued by independent accounting firm BDO, shows impressive financial performance amid increased market capitalisation.
Tether’s Q1 2024 Financial Success
In the first quarter of 2024, Tether recorded a remarkable net profit of $4.52 billion. This was driven primarily by entities responsible for stablecoin issuance and reserve management. About $1 billion of this profit stemmed from net operational gains, particularly US Treasury holdings. At the same time, the rest was attributed to mark-to-market gains on Bitcoin (BTC) and gold positions.
Tether’s strategic approach included a significant uprise in direct and indirect US Treasury holdings, surpassing $90 billion. This involved indirect exposure through overnight reverse repurchase agreements secured by US Treasuries and investments in US Treasuries via money market funds.
Notably, Tether disclosed its net equity for the first time, showing an amount of $11.37 billion as of March 31, 2024, up from $7.01 billion reported at the end of 2023. In addition, excess reserves supporting stablecoin offerings increased by $1 billion, totalling nearly $6.3 billion.
CEO’s Emphasis on Transparency and Stability
BDO’s confirmation reaffirmed that Tether-issued tokens are 90% backed by cash and equivalents, emphasising Tether’s commitment to liquidity in the stablecoin ecosystem. The report noted that over $12.5 billion worth of USDT was issued in the first quarter alone.
Tether’s strategic investments, surpassing $5 billion, span various sectors such as artificial intelligence, renewable energy, person-to-person communication, and Bitcoin mining.
In response to the report, Tether’s CEO Paolo Ardoino highlighted the company’s dedication to transparency, stability, liquidity, and prudent risk management. Ardoino highlighted Tether’s record-breaking profit and ongoing efforts to enhance transparency and trust within the cryptocurrency industry.