Tether Holdings Limited has shattered records with its 2024 Q2 audit report, posting a staggering $5.2 billion net profit for the year’s first half. The stablecoin giant’s financial prowess is turning heads in both crypto and traditional finance circles.
According to a July 31 press release, Tether’s Q2 performance was remarkable. With a net operating profit of $1.3 billion, it marked the company’s most successful quarter so far. However, the real standout was the surge in Tether’s US Treasury holdings, reaching $97.6 billion and propelling the firm to the 18th spot among global holders of US debt.
Tether has achieved more than just a victory; it marks a significant shift in the financial world. The company now possesses a larger amount of US Treasuries than the combined holdings of Germany, the UAE, and Australia. While some nations are divesting US debt, Tether has been actively acquiring it.
Tether 3rd-largest buyer of 3 month US Treasuries
Currently, Tether stands as the third-largest buyer of 3-month US Treasuries, closely following the UK and the Cayman Islands. Tether is not stopping there. The company is on track to potentially claim the top spot in US Treasury purchases within a year, riding the wave of growing USDT adoption.
The path wasn’t entirely without obstacles. The unpredictable nature of the cryptocurrency market led to a setback for Tether, resulting in a substantial $653 million loss due to Bitcoin’s decline. Nonetheless, Tether’s diversified investment strategy proved beneficial, as gains from gold investments offset some of the losses in the crypto sphere.
Transparency holds a central role for Tether, evident in the significant financial figures. As of June 30, 2024, the group’s total net equity impressively reaches $11.9 billion. This substantial financial strength enables Tether to uphold a substantial $5.3 billion remains in reserves, bolstering the stability of its token.
The stablecoin market is showing no signs of slowing down, with Tether issuing over $8.3 billion in USDT during Q2 alone. However, this solid financial footing positions Tether as a key player in stablecoins and also as a potential powerhouse in burgeoning technology sectors like AI, biotech, and telecommunications.
