These Divisions Contributed Significantly to Tether’s Q1 2024 Profit of $4.52B

Earlier this week, Tether, the largest stablecoin issuer, revealed that its net income for the first quarter of 2024 exceeded $4.52 billion. The company has recently expanded its business, and a significant portion of its profits come from long-term holdings. It is aimed at existing businesses rather than newly established departments.

tether revealed Approximately $1 billion of the profits in the first quarter of 2024 came from entities responsible for issuing stablecoins and managing related reserves, according to the attestation report.

Tether made $4.52 billion in profit last quarter

In mid-April, Tether announced that it would expand its framework beyond stablecoins. The company announced new divisions including Tether Edu, Tether Power, and Tether Data, which will be responsible for digital skills education, sustainable Bitcoin mining operations, and strategic investments in emerging technologies.

Tether Finance has been around for a long time and will continue to lead the company’s stablecoin products and financial services. Tether disclosed that the $1 billion the unit earned last quarter was primarily due to net operating income from its holdings in U.S. Treasuries. During the quarter, Tether increased its direct and indirect ownership of U.S. Treasury securities through investments through money market funds and overnight reverse repurchase agreements.

The remainder of Tether’s Q1 2024 profit came from appreciation in the company’s Bitcoin and gold positions. Notably, the company’s holdings in U.S. Treasuries currently exceed $90 billion.

“With its first certification in 2024, Tether has demonstrated its unwavering commitment to transparency, stability, liquidity, and responsible risk management. “We continue to break records in the new profit benchmark of USD, which reflects the company’s sheer financial strength and stability,” said Tether CEO Paolo Ardoino.

Tether made strategic investments totaling $5 billion in Q1 2024 in other sectors including renewable energy, artificial intelligence, peer-to-peer communications, and Bitcoin mining.

Issuance of additional USDT of $12.5 billion

Interestingly, Tether has revealed his net worth for the first time. The company witnessed a significant jump from $7.01 billion recorded by the end of Q4 2023 to $11.37 billion as of March 31.

Meanwhile, Tether claims that its stablecoin offering has increased its excess reserves by $1 billion, bringing the total to around $6.3 billion. Tether-issued stablecoins are currently 90% backed by cash and cash equivalents. The company also issued an additional $12.5 billion in USDT last quarter.

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