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Check Out How Tether Crushed It in Q1 2024 with Record Profits and Bold Financial Moves!

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  • Tether Holdings Limited’s strong treasury and cryptocurrency investments propel the company to a record-breaking $4.52 billion net profit in Q1 2024.
  • Tether announces that its net equity is $11.37 billion for the first time, highlighting its improved financial stability and transparency.

Tether Holdings Limited (BVI) has published its detailed Q1 2024 financial report. This report, which has received validation from renowned international accounting firm BDO. It provides a thorough assessment of the group’s financial situation that goes beyond the reserves supporting its stablecoins denominated in fiat.

A Performance That Broke Records

For Tether, the first quarter of 2024 was historic as the company reported a record $4.52 billion net profit. This accomplishment highlights the company’s strategic operations and efficient management, building on the momentum it achieved in the latter half of 2023.

The substantial profit was made up of mark-to-market adjustments in Bitcoin and Gold investments, as well as about $1 billion in net operational income, mostly from holdings in U.S. Treasury securities.

Tether revealed its expanded holdings of US Treasury bonds, which now total more than $90 billion, highlighting a smart financial play. This covers investments made through money market funds and overnight reverse-repurchase agreements, as well as direct and indirect exposures.

This move not only strengthens the financial base of the group but also underscores its commitment to maintaining liquidity and stability within the stablecoin market.

Tether Initial Net Equity Disclosure

Tether disclosed its net equity for the first time, stating that it was an astounding $11.37 billion as of March 31, 2024, in a move towards even more transparency. Compared to the $7.01 billion recorded at the end of 2023, this is significant growth.

Source: Tether blog post

The surplus reserves, which are currently close to $6.3 billion and act as a financial safety net for the company’s stablecoin offers, were also increased, according to the report.

The report provided by BDO confirmed that 90% of Tether-issued tokens are backed by cash and cash equivalents, reinforcing the company’s commitment to liquidity within the stablecoin ecosystem.

Source: Tether blog post

Tether released more than $12.5 billion in USDT during the first quarter, demonstrating the increasing demand and confidence in its stablecoins.

Reiterated in the Reserves Report part was Tether’s strong financial condition as of the end of March 2024, with assets vastly exceeding liabilities by approximately $6.26 billion.

Tether has made strategic investments totaling more than $5 billion in fields such as P2P communication, renewable energy, AI and analytics, and bitcoin mining, as previously reported by ETHNews.

These investments demonstrate the company’s diversified investment approach and dedication to innovation and growth.¬†Paolo Ardoino, CEO of Tether, commented on the report and stated:

“With the first attestation of 2024, Tether has demonstrated its unwavering commitment to transparency, stability, liquidity, and responsible risk management. This report establishes a new standard for openness and confidence in the cryptocurrency space in addition to reflecting our financial stability.”

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Syofri is an active forex and crypto trader who has been diligently writing the latest news related to the digital asset sector for the past six years. He enjoys maintaining a balance between investing, playing music, and observing how the world evolves. Business Email: info@ethnews.com Phone: +49 160 92211628