These Divisions Contributed Significantly to Tether’s Q1 2024 Profit of $4.52B

Earlier this week, the largest stablecoin issuer, Tether, revealed that it generated more than $4.52 billion in net profits in the first quarter of 2024. With the company recently expanding its operations, a large portion of the profits came from its long-standing operations. Existing companies, not newly formed divisions.

pregnancy open In a testimonial report, nearly $1 billion of profits in the first quarter of 2024 came from entities responsible for issuing stablecoins and managing related reserves.

Tether generated $4.52 billion in revenue last quarter

In mid-April, Tether announced that it was expanding its framework beyond stablecoins. The company unveiled new divisions, including Tether Edu, Tether Power and Tether Data, which will teach digital skills, sustainable Bitcoin mining operations and strategic investments in emerging technologies.

Tether Finance, which has been around, will continue to lead the company's stablecoin and financial services products. Tether revealed that the $1 billion generated by this division last quarter came from net operating profits derived primarily from its holdings of US Treasuries. During the quarter, Tether increased its direct and indirect ownership of US Treasuries through investments through money market funds and overnight reverse repurchase agreements.

The rest of Tether's earnings for Q1 2024 came from market gains in the company's Bitcoin and gold positions. It is worth noting that the company's holdings of US Treasury bonds now exceed $90 billion.

“With the first certification in 2024, Tether has demonstrated its unwavering commitment to transparency, stability, liquidity and responsible risk management. As highlighted in this latest report, Tether continues to break records with a new profit benchmark of $4.52 billion, reflecting the company’s tremendous financial strength and stability,” it said. said Tether CEO, Paolo Ardoino.

As for other divisions, which include renewable energy, artificial intelligence, peer-to-peer communications and Bitcoin mining, Tether has made strategic investments totaling $5 billion in the first quarter of 2024.

An additional US$12.5 billion was issued

Interestingly, Tether revealed its net worth for the first time. The company saw a significant rise from $7.01 billion recorded at the end of the fourth quarter of 2023 to $11.37 billion as of March 31.

Meanwhile, Tether claims that its stablecoin offerings saw a $1 billion increase in excess reserves, bringing the total to about $6.3 billion. Stablecoins issued by Tether are now backed by 90% cash and cash equivalents. The company also issued an additional $12.5 billion in cash last quarter.