Tether Posts $13 Billion Net Profit in 2024, Driven by USDT and Investment Gains

Tether, the issuer of the world’s largest stablecoin, USDT, has reported a net profit of $13 billion in 2024, driven by its thriving businesses and successful investments. The company’s quarterly attestation, released on January 31, highlights its significant revenue growth and expanding reserves.

Key Drivers of Tether’s Profit Growth

Tether’s profits were largely driven by its U.S. Treasury holdings, which generated $7 billion in earnings. Additionally, the company’s investments in Bitcoin and gold yielded $5 billion in unrealized earnings. The remaining $1 billion in profits came from other investments.

Notably, Tether increased its Bitcoin holdings to approximately 84,000 Bitcoin in late 2023, valued at nearly $8 billion. This marked the company’s first Bitcoin purchase since March.

Tether’s Reserves Reach New Heights

The company’s quarterly attestation also revealed that its U.S. Treasury Bills (T-Bills) reserves reached a new record high of $94.5 billion. This significant increase demonstrates Tether’s commitment to maintaining robust reserves and ensuring the stability of its USDT stablecoin.

USDT’s Dominance in Crypto Transactions

As the dominant stablecoin with a market capitalization of $140 billion, USDT plays a critical role in crypto transactions. According to a U.S. Treasury study, over 80% of crypto transactions involve a stablecoin, such as USDT. This underscores the significance of Tether’s operations and its impact on the broader crypto market.

Regulatory Challenges in European Markets

Despite its success, Tether faces regulatory challenges in European markets due to the European Union’s Markets in Crypto Assets Regulation framework. The company has struggled to comply with these regulations, leading to declining confidence among exchanges. Several platforms, including Coinbase, have delisted USDT for European users pending changes in compliance.

Tether’s Expansion Plans

In response to these challenges, Tether has secured a crypto license from El Salvador and plans to establish a headquarters in the country. The company also aims to invest more resources in artificial intelligence, further solidifying its position in the crypto market.

Tips for Investors:

When investing in stablecoins like USDT, consider the following:

  • Research the issuer’s reserves and compliance with regulations.
  • Understand the role of stablecoins in crypto transactions and their potential impact on the market.
  • Stay informed about regulatory developments and their potential effects on stablecoin operations.

Stay up-to-date with the latest news and developments in the crypto market by visiting Global Crypto News.

Post Views: 3