As a researcher with a keen eye for financial trends and a deep understanding of the crypto market, I must admit that Tether’s performance in the first half of 2024 has left me genuinely astounded. The company’s transition to US Treasuries seems to have paid off handsomely, with profits reaching unprecedented heights and positioning them as a significant player in the global debt market.
In simpler terms, Tether – a prominent player in the cryptocurrency sector and the provider of the popular stablecoin USDT – has published its semi-annual report. This report indicates significant growth, with profits reaching almost a billion dollars every month.
Transition To US Treasuries Pays Off
Based on the report, which was audited by accounting firm BDO, Tether’s net operating earnings in Q2 of 2024 hit a record-breaking $1.3 billion, pushing their total net profits for the first half of the year beyond $5 billion.
As per the issuer of Tether, their financial growth and stability are primarily supported by an income source stemming from investments in U.S. Treasury Bills (T-Bills). This strategy was adopted following the removal of commercial paper from their stablecoin reserves and its replacement with U.S. T-Bills in 2022.
In the second quarter of the year, Tether’s ownership of U.S. Treasuries, both direct and indirect, showed significant growth, exceeding $97.6 billion, marking a new record. This growth positions Tether as the 18th largest holder of U.S. debt worldwide and the third largest buyer of 3-month U.S. Treasuries after the UK and the Cayman Islands, across various countries.
In spite of Bitcoin (BTC) price variations, peaking at a record high of $73,700 in March, the report underscored a rise in overall equity by $520 million during the second quarter. Gold’s strong performance helped offset these losses. As of June 30, the company reported consolidated net equity amounting to $11.9 billion.
Tether Commits Profits To Ecosystem Expansion
As per the financial records released on June 30, 2024, the total value of Tether’s reserve funds for its active tokens stood at a staggering $118 billion. This figure surpasses their outstanding debt by a significant margin of $5.3 billion.
To strengthen its position and enhance Tether’s ecosystem, the company announced that some of its second-quarter earnings will be channeled into key initiatives, while keeping an impressive $5.3 billion in reserves to ensure token stability.
The company’s investment portfolio included a variety of long-term projects such as eco-friendly energy solutions, Bitcoin mining operations, advanced AI systems, telecom technologies, brain-related tech, education sectors, and more.
Paolo Ardoino, Tether’s CEO, expressed excitement about the company’s expansion and financial success during the initial months of the year on various social platforms.
Reflecting on our incredible journey, it’s hard to believe we’ve scaled our crypto venture to unprecedented heights. The opportunity to materialize our wildest dreams is nothing short of awe-inspiring. For us, investing in Tether feels like a Once-In-A-Century chance. As a privately held company, we can channel all our energy into the essential aspects that drive our growth and success.
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2024-08-01 09:05