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Tether Reports Monster Q1 Profit, Net Equity Tops $11 Billion

In disclosing its net equity for the first time, the company says it's committed to fostering trust and stability in the digital asset space.

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In a sign of continued financial strength, stablecoin issuer Tether has announced a record-breaking profit of $4.52 billion for the first quarter of 2024 – a 61% increase from the previous quarter.

This impressive performance is accompanied by significant growth in Tether's reserves, which now exceed $90 billion, according to an announcement on Wednesday.

Some $3.52 billion of the company's profit in the past quarter stemmed from the firm’s financial gains on Bitcoin and gold, while the additional $1 billion came from operating profits. According to Arkham Intelligence data, the firm's "bc1qj" wallet holds 75,354 BTC, worth around $4.3 billion.

This news follows a period of turbulence in the crypto market during late 2022. Tether, however, emphasized its commitment to transparency – still a longstanding point of contention by critics – by releasing its latest attestation reports, independently verified by a leading accounting firm. These reports offer a detailed breakdown of Tether's assets and liabilities, including its significant holdings of U.S. Treasury bills.

Source: Tether

Tether also revealed for the first time its net equity, which stands at $11.37 billion, as of March 31, representing a substantial increase from December 2023, when it stood at $7.01 billion.

"With the first attestation of 2024, Tether has demonstrated its unwavering commitment to transparency, stability, liquidity, and responsible risk management…In reporting not just the composition of our reserves, but now the Group’s net equity of $11.37 billion, Tether is again raising the bar in the cryptocurrency industry in the realms of transparency and trust," Tether CEO Paolo Ardoino said in the announcement.

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Tether’s USDT is the world’s largest stablecoin, worth over $110 billion in circulation, according to CoinMarketCap data. The company issued $12.5 billion worth of USDT in the first quarter of 2024.

Amid its recent growth, Tether has announced several strategic investments, including in artificial intelligence, brain-computer interface (BCI) technology, and Bitcoin mining.

Tether's financial health appears robust, with strong reserves and a significant increase in net equity. This, combined with its record-breaking profits, suggests Tether is well-positioned for the future, despite the questions surrounding its controversial past. However, the debate around Tether's business model and its impact on the stablecoin market is likely to continue.

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