Tether Hits Record $4.5 Billion Profit In First Quarter On Gains From Bitcoin And Gold

Updated: 02 May 2024

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Stablecoin issuer Tether recorded a record net profit of $4.52 billion in the first quarter as gains from Bitcoin and gold surged.

About $3.52 billion of the unrealized profit came from price gains on its holdings of Bitcoin and gold, while the additional $1 billion came from its US Treasury investments. It increased its ownership of Treasury bills to the highest level ever at $90 billion.

Tether Reveals Its Net Equity For The First Time

Tether also revealed for the first time its net equity, which stood at $11.37 billion on March 31.

“This reflects a notable uptick from the recorded equity of $7.01 billion on December 31, 2023,” it said in a statement.

Tether Releases Q1 2024 Attestation: Reports Record-Breaking $4.52 Billion Profit, Highest Treasury Bill Ownership Percentage Ever, Total Group Equity of $11.37 Billion

Read More:https://t.co/lzvEGK6nJS

— Tether (@Tether_to) May 1, 2024

Fiat-denominated stablecoins issued by the firm are currently backed by as much as 90% in cash and cash equivalents, according to the latest attestations.

These attestations are part of the company’s efforts to be more transparent, and to address the uncertainty around the company’s reserves.

“Tether once again demonstrates its commitment to transparency, openness and conservative risk management,” Tether CEO Paolo Ardoino said in a May 1 post on X.

Sitting On A Massive Unrealized Profit For Its BTC Position

Tether is the seventh largest Bitcoin holder. Wallet “bc1q,” belonging to the company, currently holds 75,354 BTC that is worth over $4.34 billion, according to Arkham Intelligence. That is after Tether acquired 8,888 BTC with a value of $626 million from Bitfinex on Mar. 31.

Despite Bitcoin’s more than 9% drop over the past week, Tether’s unrealized profit for on its holdings stand at about $2 billion, according to the CoinStats portfolio tracker.