Business
Tether Reports Record $5.2 Billion Profit Amidst USDT Demand Surge
Tether has announced a record profit of $5.2 billion, driven by a significant surge in demand for USDT. Explore the factors contributing to this financial milestone and what it means for the cryptocurrency market.
Tether Reports Record Profits Amidst Growing Demand for USDT
In a significant announcement made on Wednesday, Tether, the prominent issuer of stablecoins, revealed an impressive net profit of $5.2 billion for the first half of the year. This milestone coincided with a surge in the market capitalization of its flagship cryptocurrency, USDT, which has reached new all-time highs.
The company disclosed that it achieved $1.3 billion in net operating profits during the second quarter of the year. A portion of these profits has been strategically reinvested into various “strategic projects,” indicating Tether’s commitment to growth and innovation.
According to the latest quarterly attestation, verified by the reputable accounting firm BDO Italy, Tether’s entities—Tether International Limited and Tether Limited—reported a remarkable total of $118.4 billion in assets. This figure stands against $113.1 billion in liabilities as of June 30, resulting in an impressive excess reserve of $5.3 billion that underpins the company’s stablecoin offerings.
Among its holdings, Tether’s investments in U.S. debt amounted to $97.6 billion, positioning the company as the 18th largest holder of U.S. debt, surpassing nations such as Germany, the United Arab Emirates, and Australia.
Furthermore, Tether has established a separate division known as Tether Investments, dedicated to managing its expanding ventures into sectors like bitcoin (BTC) mining, artificial intelligence, and other investment opportunities. This division reportedly boasts a net equity value of $6.2 billion, as highlighted in the recent attestation.
USDT serves as a crucial component of the cryptocurrency market’s infrastructure, facilitating trading and increasingly gaining traction in developing countries, where it acts as a conduit for accessing U.S. dollars. With a current market value of $114 billion, up from $91 billion earlier this year, USDT remains the most popular stablecoin, according to data from CoinGecko.
Despite facing scrutiny over the transparency of its reserves, Tether continues to assert its stability and reliability. Howard Lutnick, chairman and CEO of the Wall Street investment bank Cantor Fitzgerald, which manages a portion of Tether’s assets, emphasized that the company indeed possesses the necessary funds to back its stablecoins.