Tether, a prominent stablecoin issuer, has reported a record-breaking $2.5 billion in profits for the third quarter of 2024, bringing its nine-month total to a staggering $7.7 billion. This surge in profitability comes as Tether continues to solidify its position as a dominant force in the digital asset market.
As of September 30, 2024, Tether’s consolidated assets surpassed $134 billion, with a group equity of $14.2 billion. This financial strength is underscored by a recent attestation conducted by BDO, a global independent accounting firm.
During the third quarter, Tether’s market capitalization reached a significant milestone of $120 billion, reflecting a 30% growth in 2024 and indicating increasing global demand for its stablecoin.
A key factor contributing to Tether’s robust financial performance is its diversified reserve portfolio. Over $105 billion of its assets are held in cash and cash equivalents, with a substantial portion, $102.5 billion, invested in U.S. Treasuries. This level of U.S. Treasury holdings would position Tether among the top 18 global holders if it were considered a country, surpassing economies like Germany and Australia.
Furthermore, Tether has strengthened its reserve buffer to over $6 billion, providing a substantial cushion against potential market volatility. The company also benefited from significant returns on its gold holdings, which generated approximately $1.1 billion in unrealized profits during the quarter.
Tether’s venture arm, Tether Investments, has been actively deploying capital across various sectors, including renewable energy, artificial intelligence, and Bitcoin mining. With $7.7 billion in strategic investments and an additional holding of 7,100 Bitcoin, Tether Investments is poised to capitalize on emerging opportunities within the digital asset ecosystem.
Paolo, CEO of Tether, emphasized the company’s commitment to transparency, liquidity, and responsible risk management. He highlighted the $120 billion USDT milestone and the substantial U.S. Treasury exposure as indicators of Tether’s unparalleled financial strength. By increasing its reserve buffer and maintaining a focus on strategic investments, Tether aims to continue setting the standard for stability in the financial industry.
It’s worth noting that Tether’s recent financial performance comes amidst scrutiny from regulatory authorities. The company has faced allegations of potential sanctions and anti-money-laundering violations, which it has vehemently denied. Despite these challenges, Tether remains committed to cooperating with law enforcement agencies and has taken proactive measures to combat criminal activity within the digital asset space.
