Tether, a popular cryptocurrency firm, has reported a record-breaking net profit of $5.2 billion for the first half of 2024. This marks a significant milestone for the company, with its second-quarter profit reaching $1.3 billion, the highest quarterly profit to date.
The increase in profitability can be attributed to traditional asset-class investments, particularly US Treasuries. Tether’s direct and indirect ownership of US Treasuries now exceeds $97.6 billion, surpassing countries like Germany, the UAE, and Australia. This places Tether 18th globally in terms of US debt ownership, and 3rd in purchases of 3-month US Treasuries, following the UK and the Cayman Islands.
Despite a $653 million unrealized loss due to a decline in Bitcoin prices, Tether’s consolidated equity reached $11.9 billion as of June 30. This reflects an increase of $520 million from the first quarter, with a $165 million unrealized gain from gold investments partially offsetting the loss.
During the second quarter, Tether issued over $8.3 billion in USDT and maintained a reserve surplus of $5.3 billion as of the end of June to ensure the stability of its tokens. The value of the reserves backing Tether tokens in circulation exceeds liabilities by $5.33 billion, reaffirmed by the recently released attestation from BDO.
Tether has reinvested its profits into various projects, including sustainable energy, Bitcoin mining, data and AI infrastructure, P2P telecommunications technology, neurotech, and education. This highlights the company’s commitment to innovation and long-term growth.
The second quarter report also emphasizes Tether’s strong financial position, with consolidated assets surpassing consolidated liabilities. The independent auditors’ report from BDO confirms the accuracy of the Consolidated Financials Figures and Reserves Report, ensuring that it is fairly presented and free from material misstatement.
Overall, Tether’s record-breaking profits and strategic investments demonstrate its continued success and commitment to driving innovation in the cryptocurrency industry.