Tether, the issuer of the leading stablecoin USDT, has once again demonstrated its financial prowess, reporting a staggering net profit of $2.5 billion for the third quarter of 2024. This impressive figure contributes to a remarkable nine-month consolidated profit of $7.7 billion, reinforcing Tether’s position as a titan in the cryptocurrency market.
Record Profits And Strong Assets
The latest attestation report reveals that Tether’s total assets have surged to a whopping $134.4 billion, while the company’s group equity stands at $14.2 billion. This continued growth reflects a year marked by consistent profitability, as Tether also reported net profits in both the first and second quarters. The latest results signify a new all-time high (ATH) for the company, highlighting its robust financial health and effective management strategies.
In a notable development, Tether’s circulating supply of USDT has reached nearly $120 billion, a 30% increase year-to-date, equating to an additional $27.8 billion issued in 2024 alone. This expansion underlines the growing demand for stablecoins in the cryptocurrency ecosystem, further solidifying Tether’s leadership in the market.
Strategic Investments Fueling Growth
Tether’s impressive profit margins can be attributed to its strategic investments in US treasuries and gold. The company reported profits of $1.3 billion from US treasury exposure and an additional $1.1 billion from its gold holdings. As the US Treasury noted, the increasing popularity of stablecoins like USDT is driving demand for short-dated treasuries, making Tether’s investment strategy particularly lucrative.
Additionally, Tether’s investment arm currently manages $7.7 billion across various sectors, including renewable energy, Bitcoin mining, artificial intelligence, telecommunications, and education. The firm’s portfolio also includes 7,100 Bitcoin, further diversifying its asset base.
Commitment to Transparency and Growth
Tether CEO Paolo Ardoino emphasized the company’s commitment to transparency, liquidity, and responsible risk management. In a statement, Ardoino pointed to the milestone of reaching $120 billion in USDT circulation and the $102.5 billion in treasury exposure as indicators of Tether’s unmatched strength in the industry.
Interestingly, Ardoino reiterated that Tether has no plans to go public anytime soon. He explained that companies typically pursue public offerings for capital or liquidity, which Tether currently does not require. Instead, the firm’s focus remains on bolstering its financial position and expanding its market reach.
Also Read: Tether Mints 1 Billion USDT On Tron – What The $20 Billion Milestone Means For Crypto In 2024
In a recent post on X, Ardoino shared insights into Tether’s user growth, revealing that 330 million on-chain wallets and accounts have received USDT. This number does not account for the millions who transact on centralized exchanges. Notably, Tether has seen a rapid acceleration in the creation of new on-chain USDT wallets, reaching more than 35 million new addresses each quarter.
As Tether continues to break records and expand its influence in the cryptocurrency market, its recent performance underscores a thriving ecosystem driven by strategic investments and a commitment to transparency. With a strong financial foundation and growing user base, Tether is well-positioned to maintain its leadership role in the ever-evolving world of digital assets.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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