Half-year profit reaches $5.2 billion, Tether makes a triumphant return
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Half-year profit reaches $5.2 billion, Tether makes a triumphant return
Profit growth was primarily driven by traditional asset investments, mainly U.S. Treasury bonds.
Navigating Web3 tides with focused insightsSource: cryptoslate
Compiled by: Blockchain Knight
According to a recently released second-quarter audit report by BDO, one of the world's leading independent accounting firms, Tether Holdings announced a record-high net profit of $5.2 billion for the first half of 2024.
Meanwhile, the company achieved a net operating profit of $1.3 billion in the second quarter, marking its highest quarterly profit to date.
The profit growth was primarily driven by traditional asset investments, mainly U.S. Treasury securities, enabling Tether to directly and indirectly hold assets exceeding $97.6 billion.
This figure places Tether’s Treasury holdings above those of countries such as Germany, the United Arab Emirates, and Australia, ranking it 18th globally in terms of U.S. Treasury holdings. Additionally, Tether ranked third in purchases of 3-month U.S. Treasuries, behind only the United Kingdom and the Cayman Islands.
As of June 30, Tether's consolidated equity reached $11.9 billion, an increase of $520 million from the first quarter.
Despite an unrealized loss of $653 million due to declining BTC prices, this was partially offset by unrealized gains of $165 million from gold investments.
Tether issued over $8.3 billion worth of USDT during the second quarter and maintained a reserve surplus of $5.3 billion at the end of June to ensure token stability.
This attestation reaffirms the accuracy of Tether's Consolidated Financial Figures and Reserve Report (CFFRR), emphasizing that reserves supporting Tether's circulating tokens exceed liabilities by $5.33 billion.
As of June 30, the total reserves backing Tether tokens amounted to $118.44 billion, while liabilities totaled $113.10 billion, with $112.40 billion related to issued digital tokens.
Tether reinvests profits into various projects, including sustainable energy, Bitcoin mining, data, artificial intelligence infrastructure, peer-to-peer telecommunications technology, neurotechnology, and education, demonstrating its commitment to innovation and long-term development.
The second-quarter report also highlighted Tether's financial health, with consolidated assets exceeding consolidated liabilities.
An independent auditor's report from BDO confirmed that the consolidated financial data and reserve reports are fairly presented and free of material misstatements.
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