Tether Holdings, the company responsible for the world’s largest stablecoin, 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 represents a significant increase from the $7.01 billion in equity recorded at the end of December 2023, according to Tether’s attestation report for Q1 2024.
Of the $4.52 billion net profit, approximately $1 billion came from operating profits derived 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.
According to CoinMarketCap data, Tether’s USDT is the largest stablecoin in the world, with a value of over $110 billion. The company issued $12.5 billion worth of USDT in Q1 2024.
The report also revealed a $1 billion increase in excess reserves, which serve as a buffer to support Tether’s stablecoin offerings. The excess reserves currently amount to just below $6.3 billion.
Tether’s attestation report for Q1 2024 further disclosed liabilities of over $104 billion related to “digital tokens issued.” However, the value of Tether’s reserve assets exceeds its liabilities by over $6.2 billion as of March 31.
According to on-chain intelligence platform Arkham Intelligence, Tether’s Bitcoin wallet, “bc1q,” currently holds 75,354 BTC, valued at over $4.38 billion. This makes Tether the seventh-largest Bitcoin holder, according to BitInfoCharts. On March 31, Tether acquired 8,888 Bitcoin worth $626 million from Bitfinex.
Despite Bitcoin’s decline below the $60,000 mark, Tether is still sitting on an unrealized profit of over 91%, valued at over $2 billion, according to the CoinStats portfolio tracker.
In related news, losses from crypto hacks have dropped by 67% in April to $60 million.