Tether Holdings, the company responsible for the largest stablecoin in the world, Tether (USDT), has reported a record net profit of $4.52 billion in the first quarter of 2024.
In addition, Tether has disclosed its net equity for the first time, which currently stands at $11.37 billion as of March 31. This marks a significant increase from the $7.01 billion in equity recorded at the end of December 2023, as stated in Tether’s attestation report for the first quarter of 2024.
Out of the total net profit, approximately $1 billion came from operating profits generated from United States Treasury holdings, while the remaining $3.52 billion consisted of market-to-market gains in the company’s Bitcoin (BTC) and gold positions.
Tether’s USDT is valued at over $110 billion, making it the largest stablecoin in the world, according to CoinMarketCap data. The company issued $12.5 billion worth of USDT in the first quarter of 2024.
The report also highlighted a $1 billion increase in excess reserves, which are kept as a buffer to support Tether’s stablecoin offerings. Tether’s excess reserves now amount to just under $6.3 billion.
Tether’s attestation report for the first quarter of 2024 revealed liabilities worth over $104 billion related to “digital tokens issued.” However, the value of Tether’s reserve assets exceeded its liabilities by more than $6.2 billion as of March 31.
In terms of Bitcoin holdings, Tether’s Bitcoin wallet, called “bc1q,” currently holds 75,354 BTC, which is valued at over $4.38 billion, according to on-chain intelligence platform Arkham Intelligence. This makes Tether’s “bc1q” address the seventh-largest Bitcoin holder, as confirmed by BitInfoCharts. On March 31, Tether acquired 8,888 Bitcoin worth $626 million from Bitfinex.
Despite Bitcoin’s price falling below $60,000, Tether has an unrealized profit of over 91%, amounting to over $2 billion, according to the CoinStats portfolio tracker.
In related news, losses from crypto hacks decreased by 67% in April to $60 million.