USDT stablecoin issuer, Tether, has disclosed a record $5.2 billion in profit generated in the first half of 2024, with net operating profit of $1.3 billion in the second quarter, increasing from the $1 billion announced in Q1 2024.
MILESTONE | Tether Reports Record-Breaking $4.52 Billion Profit in Q1 2024
The main contributing entities are those in charge of issuing Stablecoins and managing the respective reserves where approximately $1 billion of this profit stemmed from net operating profits, primarily… pic.twitter.com/6v7KpcbfCO
— BitKE (@BitcoinKE) May 3, 2024
According to Tether’s Q2 2024 attestation report, its direct and indirect ownership of U.S. Treasuries now exceeds $97.6 billion – an all-time high for the firm, which puts its exposure above Germany, the United Arab Emirates, and Australia.
Tether’s attestation also revealed that the firm has seemingly slowed or halted any significant Bitcoin buying activity. As of June 30 2024, Tether’s attestation report shows its Bitcoin balance at $4.73 billion, which is lower than its previous report. In its Q1 2024 attestation, it reported Bitcoin reserves of $5.37 billion as of March 31 2024.
Tether invested part of its profits back into strategic ecosystem projects but maintained its excess reserves at $5.33 billion. Tether CEO, Paolo Ardoino, said the decision to grow its excess reserves was a deliberate choice to further protect USDT’s global user base.
“Tether’s management, in fact, decided to keep $5.33 billion in excess reserves as part of the stablecoin reserves (on top of the 100% reserves that are backing all issued tokens) to further protect USDt’s global user base, accounting for hundreds of millions of people globally, with deep concentration in emerging markets and developing countries,” said Ardoino on X.
STABLECOINS | Almost the Entire USDT User Base is Now in Emerging Markets, Says CEO, Tether
“In the last few years we have seen the usage of USDT going from pure cryptocurrency trading to being basically the most used digital dollar in the world,” Ardoino said to Reuters on the… pic.twitter.com/QMXhz72HhA
— BitKE (@BitcoinKE) April 23, 2024
Since 2023, the company has been venturing beyond its original role as a stablecoin issuer into:
- Sustainable energy
- Bitcoin mining
- Data
- AI infrastructure
- Peer-to-peer telecommunications technology
- Neurotech and
- Education
LAUNCH | Tether ( $USDT ) Launches Educational Division to Focus on Africa and Other Emerging Markets
According to #Tether CEO, some of the educational materials provided by Tether Edu might come with a fee. The initiative, still in its pre-launch phase, is actively recruiting… pic.twitter.com/btW2Oxgq0Q
— BitKE (@BitcoinKE) February 6, 2024
Among the investments made by the company include $622.6 million in November 2023 into Northern Data Group, a technology company that specializes in generative AI cloud platforms, Bitcoin mining operations, and offers data center infrastructure services.
“Tether invests only in companies and technologies that are aligned with our fundamental company mission: disintermediate, build for independence, build for resiliency, build for the future, build for the apocalypse,“ said Ardoino.
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