Tether, provider of the largest stablecoin on the market, USDT, reported an unprecedented feat this first quarter. According to the entity’s quarterly report, a historic profit of US$4.52 billion was recorded. The value exceeds expectations and outlines USDT’s dominance in the digital financial market.
The company released its quarterly report this Wednesday (1st). The report also revealed a net operating gain of about $1 billion coming primarily from its investments in the U.S. Treasury. The latter, made up mainly of short-term notes, is the backbone of Tether’s reserves, valued at a sum of US$110 billion, anchoring its stable cryptocurrency USDT to the dollar.
Tether reveals investment numbers
In addition to the gains from its holdings in the Treasury, Tether reaped the benefits of increases in the value of Bitcoin and its gold reserves. Over the course of the quarter, its BTC investments increased from $2.8 billion to $5.4 billion. Meanwhile, gold reserves saw growth from US$3.5 billion to US$3.7 billion.
The magnitude of these results is even more remarkable considering the issuance of over 12 billion new USDT tokens in this period alone.
“Tether reaffirms its commitment to transparency and risk management by maintaining a substantial volume of excess reserves,” highlighted Paolo Ardoino, CEO of Tether, in a tweet.
Since May 2023, Tether has started investing in Bitcoin, aiming to diversify its portfolio. Recent data suggests that the company now holds 75,300 BTC, a significant increase since the beginning of the year.
Tether’s excess reserves, now totaling $6.3 billion, provide a buffer against potential risks associated with its base reserve composition, exceeding the value of its secured loans by $4.7 billion.
Tether reports are good, but they do not represent auditing
Despite not having undergone a formal audit, Tether provides quarterly reports attested by BDO, the fifth largest global accounting firm.
With the recent decline in the price of Bitcoin, Tether may see a partial reversal of unrealized gains in the first quarter.
Source: https://www.criptofacil.com/tether-reporta-lucro-liquido-de-us-45-bilhoes-no-primeiro-trimestre/
