Earlier this week, the largest stablecoin issuing company, Tether, revealed that it made more than $4.52 billion in net profit in the first quarter of 2024. With the firm having expanded its operations recently, a substantial portion of the profits came from its long-standing businesses and not the newly formed divisions.
Tether revealed in an attestation report that roughly $1 billion of the profit in Q1 2024 came from entities in charge of issuing stablecoins and managing related reserves.
Tether Made $4.52B in Profit Last Quarter
In mid-April, Tether announced that it was expanding its framework beyond stablecoins. The firm unveiled new divisions, including Tether Edu, Tether Power, and Tether Data, which would handle digital skills education, sustainable Bitcoin mining operations, and strategic investments in emerging technologies.
Tether Finance, which has been in existence, will continue spearheading the company’s stablecoin products and financial services. Tether revealed that the $1 billion this division made last quarter came from net operating profits derived mainly from its U.S. Treasury holdings. During the quarter, Tether increased its direct and indirect ownership of U.S. Treasuries via investments through money market funds and overnight reverse-repurchase agreements.
The remainder of Tether Q1 2024 profits came from mark-to-market gains in the company’s Bitcoin and Gold positions. Notably, the firm’s U.S. Treasury holdings are now in excess of $90 billion.
“With the first attestation of 2024, Tether has demonstrated its unwavering commitment to transparency, stability, liquidity, and responsible risk management. As shown in this latest report, Tether continues to shatter records with a new profit benchmark of $4.52 billion, reflecting the company’s sheer financial strength and stability,” Tether CEO Paolo Ardoino said.
For the other divisions, encompassing renewable energy, artificial intelligence, peer-to-peer communications, and Bitcoin mining, Tether made strategic investments totaling $5 billion in Q1 2024.
Additional $12.5B USDT Issued
Interestingly, Tether unveiled its net equity for the first time. The company witnessed a significant spike from the $7.01 billion recorded by the end of Q4 2023 to $11.37 billion as of March 31.
Meanwhile, Tether claims its stablecoin offerings saw a $1 billion increase in excess reserves, bringing the total to approximately $6.3 billion. Tether-issued stablecoins are now backed by cash and cash equivalents at 90%. The company also issued an additional $12.5 billion USDT last quarter.
SPECIAL OFFER (Sponsored)
Binance Free $600 (CryptoPotato Exclusive): Use this link to register a new account and receive $600 exclusive welcome offer on Binance (full details).
LIMITED OFFER 2024 for CryptoPotato readers at Bybit: Use this link to register and open a $500 BTC-USDT position on Bybit Exchange for free!
>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : CryptoPotato – https://cryptopotato.com/these-divisions-contributed-significantly-to-tethers-q1-2024-profit-of-4-52b/
