Tether's first quarter net profit hit a record high of US$4.52 billion! Most come from Bitcoin, gold

This site (120bTC.coM): Tether Holdings, the issuer of the world’s largest stable currency USDT, announced that its net profit in the first quarter of this year reached a record high of US$4.52 billion.

Tether also announced for the first time that its net equity (net equity, capital minus liabilities) as of March 31 was US$11.37 billion. This is a significant increase from the $7.01 billion net capital value registered at the end of December 2023, according to Tether’s first-quarter third-party attestation report.

Of this substantial increase in positions, approximately US$1 billion is the operating profit generated from holding U.S. Treasury bond positions, and the remaining US$3.52 billion comes from the company's earnings from its Bitcoin and gold positions.

According to CoinMarketCap, Tether’s USDT is the world’s largest stablecoin, with a total market value of more than $110 billion, and USDT worth $12.5 billion was issued in the first quarter of this year alone.

Tether’s report also revealed that the excess reserves used to support the company’s stablecoin product buffer increased by US$1 billion. In other words, Tether’s excess reserves are now approaching US$6.3 billion.

The report further announced that as of March 31, the amount of liabilities related to "issued digital currencies" exceeded US$104 billion, and the value of Tether's reserve assets That's more than $6.2 billion more than the debt amount.

According to data from the on-chain intelligence platform Arkham Intelligence, Tether’s Bitcoin wallet “bc1q” currently holds 75,354 Bitcoins, with a total value of more than 4.38 billion US dollars.

Tether’s most recent purchase of Bitcoin was on March 31, when it bought 8,888 Bitcoins worth $626 million on cryptocurrency exchange Bitfinex.

This makes Tether’s “bc1q” wallet the seventh largest Bitcoin holder in the world, according to BitInfo Charts. The company has stated that it will invest 15% of its net profits in Bitcoin in order to diversify the collateral assets of the USDT stablecoin.

Although Bitcoin fell below the $60,000 mark, Tether still has an unrealized profit rate of more than 91% on its books and is worth more than $2 billion, according to CoinStats Portfolio Tracker data.

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