Tether Announces 25 Billion Profit for Q3 Bolstered by Robust Treasury and Gold Reserves
Tether, the company responsible for the world’s largest stablecoin USDT, has announced a staggering profit of $2.5 billion for the third quarter of 2024, bringing its total earnings for the year to $7.7 billion. These impressive results come as the market value of USDT approaches $120 billion.
The company’s latest quarterly attestation, verified by BDO Italy, reveals that Tether International Limited and Tether Limited hold $125.5 billion in reserve assets against $119.4 billion in liabilities as of September 30, 2024. This means that Tether has an excess reserve of over $6 billion, which provides solid backing for its stablecoins.
The majority of the profits for the quarter came from two primary sources. Tether earned $1.3 billion from the yields on its U.S. Treasury holdings, while another $1.1 billion came from the increased value of its gold reserves. The attestation shows that Tether holds $105 billion in cash and cash equivalents, with $84.5 billion of that amount in U.S. Treasury bills. When considering money market funds and reverse repurchase agreements, Tether’s total exposure to Treasury bills exceeds $102 billion.
Tether’s CEO, Paolo Ardoino, shared these details in a post on X, formerly known as Twitter, highlighting the company’s growing portfolio of traditional financial assets. In addition to the cash and Treasury bills, Tether also holds $5 billion in gold and $4.8 billion in bitcoin.
During the third quarter, Tether Investments, the company’s investment division, experienced significant growth. The venture arm, responsible for Tether’s investments in energy, mining, and artificial intelligence, reported a net equity value increase to $7.7 billion, up from $6.2 billion in the previous quarter. The investment arm also disclosed ownership of 7,100 bitcoin, valued at nearly $500 million, demonstrating Tether’s involvement in the cryptocurrency market while maintaining substantial traditional asset reserves.
USDT, Tether’s stablecoin, continues to play a central role in the digital asset ecosystem. It is currently the third-largest cryptocurrency by market value and serves as the primary form of liquidity on cryptocurrency exchanges. Furthermore, it has gained traction as a payment method in emerging markets, expanding its utility beyond crypto trading and solidifying its position as the dominant stablecoin in the market.
Addressing recent allegations made in a Wall Street Journal report, Tether firmly denied any involvement in a U.S. criminal investigation for potential violations of sanctions and anti-money laundering laws. CEO Paolo Ardoino emphasized the company’s commitment to respecting U.S. sanctions and remaining a major purchaser of U.S. debt.
The company’s financial position continues to strengthen, with growing excess reserves providing additional backing for the USDT stablecoin, which is designed to maintain a one-to-one peg with the U.S. dollar. Tether’s quarterly attestation, verified by BDO Italy, ensures transparency by regularly reporting the company’s asset holdings and reserves, providing clarity about the backing of USDT tokens in circulation.
As Tether’s Treasury holdings grow, the company becomes an increasingly significant holder of U.S. government debt. Its direct holding of $84.5 billion in Treasury bills represents a major position in the U.S. debt market.
