The US Treasury and Bitcoin helped propel stablecoin leader Tether to a record-breaking $4.52 billion in first-quarter profits.
The creators of the popular stablecoin USDT, Tether, announced a first-quarter net profit of $4.52 billion in 2024, a 61% increase over the previous quarter.
Investments in US Treasury bonds and the appreciation of the firm’s Bitcoin and gold reserves were the primary drivers of the considerable profits, according to the firm’s Q1 attestation.
On March 31, 2024, Tether’s net equity reached $11.37B. A major factor in the dramatic increase in profits is the company’s cautious purchase of more than $90 billion in US Treasury bonds.
According to CoinGecko, Tether’s market valuation is over US$110 billion, and the fact that USDT maintains a 1:1 value with the US dollar suggests that there may be substantial support for USDT.
In the first three months of the year, the business reportedly issued twelve billion USDT tokens. Bitcoin assets have grown in value to $5.40 billion and gold reserves to $3.7 billion as a result of the company’s actions.
It is not official that Tether has audited. Alternatively, it certifies quarterly that there are $6.3 billion in surplus reserves and $4.7 billion in secured loans. Beyond stablecoins, Tether’s financial infrastructure includes projects in data, tech, mining, and energy.
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