excellent news from the USDT stablecoin company

Recently, some really great news was announced by Tether, the world’s leading stablecoin (USDT) issuing and managing company.

In fact, yesterday the company announced its economic results for the first quarter of 2024.

Tether News: Record Profit for USDT Stablecoin Issuer

Economic and Financial Report of Tether Holdings Limited. Prepared by BDO, one of the world’s leading independent accounting firms.

First quarter of 2024, January 1st to March 31st. tether It reported record profits of $4.52 billion.

The total net assets of the group (Tether Group) increased to $11.37 billion.

Approximately $1 billion of this profit came primarily from net operating income from its holdings in U.S. Treasury securities, with the remainder coming from mark-to-market gains on its Bitcoin and gold positions.

The first quarter of 2024 highlights Tether’s unprecedented achievements in direct and indirect holdings of U.S. Treasury securities, which now exceed $90 billion.

This means that more than 80% of the USDT stablecoin’s reserves consist of US bonds, making it one of the safest stablecoins in the world.

Crypto News: Reserves of Stablecoin Tether (USDT)

USDT is the world’s leading stablecoin pegged to the US dollar and can be exchanged for US dollars on a 1:1 basis at any time, minus a relatively small fee.

Additionally, it can be exchanged for USD on various exchanges, including Bitfinex, a cryptocurrency exchange that belongs to the same group as Tether and serves as its main market.

Tether holds more cash or cash equivalents in its treasury than the combined value of all USDT in circulation worldwide. More than 80% of these funds are made up of government bonds issued by the U.S. Treasury, which have long had relatively high yields due to high interest rates.

Currently, the company is one of the largest private holders of U.S. government securities, but has clearly been overtaken by several foreign countries.

BDO confirmed that approximately 90% of the total USDT issued by Tether is backed by cash or equivalents (such as U.S. Treasuries). The remaining reserves consist of illiquid assets.

The report proves that as of March 31st, Tether held over $110 billion in circulating token reserves, compared to a total market value of $104 billion for the same tokens. are doing. Therefore, as of March 31, 2024, Tether’s reserves exceeded the value of the token by more than $6 billion.

Overall, the company’s net assets, excluding reserves to support its tokens, are $11.37 billion.

investment

Tether has recently begun reinvesting its proceeds into other activities, as the reserves of the USDT stablecoin far exceed the market value of the tokens currently in circulation.

As of March 31, the company has made more than $5 billion in strategic investments in various areas including AI and data, renewable energy, P2P communications, and Bitcoin mining.

Currently, Tether Group is not only a company that issues and manages stablecoins, but also a group of companies active in various fields that reinvest profits generated from USDT operations.

It is important to remember that all profits earned from investments in Treasury dollars from primary purchasers of USDT remain within the company and are never distributed to USDT holders. This means that, thanks to relatively high interest rates, the company simply makes a lot of money by buying and holding US bonds with US dollars that users exchange into her USDT.

Since interest rates will remain high for a long time, perhaps until 2026, Tether will easily continue to generate profits as long as USDT remains widely used in the cryptocurrency market.

However, what is most interesting is that Tether does not use these profits except for a minimal portion and generally invests them in other activities, including those that yield profits such as Bitcoin mining. This is why in three months he was able to record a profit of 4.52 billion dollars, while the profit earned from investments in Treasury is 1 billion dollars for him.

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Paolo Ardoino, CEO of Tether, said:

“With its first certification in 2024, Tether has demonstrated its continued commitment to transparency, stability, liquidity, and responsible risk management. Reflecting the strength and financial stability of our company, we continue to set new records with a new profit benchmark of $4.52 billion, as well as the Group’s net assets of $11.37 billion. By reporting, Tether is once again raising the bar in the crypto industry in terms of transparency and trust.”

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