Tether’s $5.2 Billion Profit in Early 2024 Breaks Records in the Crypto Market

Sentiment Status: Positive

Tether has been reinvesting some of its profits into close industries such as sustainable energy, Bitcoin mining, data infrastructure, peer-to-peer telecommunications technology, neurotech, and education.

Tether, the company behind the widely used USDT stablecoin, has reported an impressive profit of $5.2 billion in the first half of 2024. This achievement highlights Tether's dominance in the stablecoin market and its important role in the crypto market.

Unmatched Financial Strength

In a recent announcement on July 31st, Tether revealed that its US Treasury reserves have surged to $97.6 billion, surpassing the holdings of all but 17 governments worldwide. This growth reflects the increasing adoption of Tether stablecoins, which the company asserts are backed 1:1 with liquid US dollar-denominated assets. 

Furthermore, Tether's Treasury portfolio, now valued at approximately $97.6 billion, positions the company third in purchases of three-month US Treasurys, trailing only the United Kingdom and the Cayman Islands. With the total market capitalization of USDT standing at around $114 billion and reserves exceeding $118 billion.

Tether's consolidated net equity reached $11.9 billion as of June 30, 2024. This strong financial foundation has enabled the company to issue approximately $8.3 billion in USDT during the second quarter alone. CEO Paolo Ardoino emphasized that Tether's balance sheet allows it to lead the stablecoin industry in both stability and liquidity. The company's strategic reinvestments in various sectors, including artificial intelligence, biotech, and telecommunications, further reinforces its financial strength.

Increasing Adoption and Market Influence

Moreover, stablecoins like Tether's USDT and its competitor USD Coin are seeing rapid adoption. The total payments volume of these stablecoins has exceeded traditional financial services like Visa, reaching over $4 trillion. According to research strategist Tom Wan, the tokenized US Treasury market is expected to hit $3 billion by the end of 2024, further accentuating the growing integration of crypto assets into traditional financial systems.