TLDR
- Tether’s net profit reached $5.2 billion in the first six months of 2024
- The company now holds $97.6 billion in US Treasuries
- Tether has diversified into Bitcoin mining in Uruguay and AI development
- USDT stablecoin’s market cap has grown to over $114 billion
- Tether reported a record $1.3 billion net operating profit in Q2 2024
Tether, the company behind the popular USDT stablecoin, has released its financial report for the first half of 2024, revealing significant growth and expansion into new areas.
The report, audited by accounting firm BDO, shows that Tether achieved a net profit of $5.2 billion from January to June 2024. This impressive figure was bolstered by a record-breaking second quarter, in which the company reported a net operating profit of $1.3 billion.
A key factor in Tether’s financial success appears to be its investment strategy. The company has substantially increased its holdings of US Treasury bills, which now stand at $97.6 billion. This positions Tether as the 18th largest holder of US debt globally, surpassing several countries.
Tether CEO Paolo Ardoino commented on the financial results, stating that they demonstrate the company’s
“dedication to transparency, stability, liquidity, and responsible risk management.”
He added that this strong financial position allows Tether to maintain its leadership in the stablecoin market while exploring new business areas.
One of these new areas is Bitcoin mining. Tether has launched mining operations in Uruguay, marking its entry into the cryptocurrency mining sector. The company has also announced plans to develop artificial intelligence technologies, though specific details about these projects were not provided in the report.
Despite its diversification efforts, Tether’s core business continues to thrive. The market capitalization of its USDT stablecoin has grown to over $114 billion, reinforcing its position as the most widely used stablecoin in the crypto market.
Tether’s move towards US Treasuries began in 2022 when it phased out commercial paper from its reserves. This strategy appears to have paid dividends, providing a stable income base for the company. Tether has suggested that it could become the largest holder of US debt by next year if the adoption of USDT continues to grow at its current pace.
In addition to its profit figures, Tether reported $11.9 billion in consolidated net equity. The company emphasized that this disclosure is part of its ongoing commitment to transparency, a crucial factor in the stablecoin industry.
Tether’s expansion isn’t limited to finance and crypto. The company has introduced “Alloy,” a platform for creating tokens backed by Tether’s tokenized gold cryptocurrency. Ardoino also mentioned plans to apply Tether’s expertise to biotechnology and telecommunications, although no specific projects in these fields were detailed in the report.
The financial report and audit by BDO serve as part of Tether’s efforts to provide clarity about its operations and reserves, addressing past concerns about the company’s transparency.
