Tether records a $13 billion profit in 2024, with T-Bill holdings hitting an all-time high

Tether records a $13 billion profit in 2024, with T-Bill holdings hitting an all-time high

Tether, the issuer of the largest stablecoin USDT, reported a remarkable net profit of $13 billion for 2024. The company’s strong performance was driven by the issuance of USDT and significant growth in its investments, including U.S. Treasury Bills (T-Bills) and other assets.

Tether’s quarterly attestation, provided by independent accounting firm BDO Italia on January 31, revealed that the company’s reserves included $94.5 billion in T-Bills, setting a new all-time high. The company made $7 billion in profits from its T-Bill holdings, along with another $5 billion in unrealized earnings from Bitcoin and gold investments.

In a notable development late in 2024, Tether increased its Bitcoin holdings to approximately 84,000 BTC, worth nearly $8 billion, marking its first Bitcoin purchase since March. The remaining $1 billion in profits came from other investments, as outlined in the attestation.

Tether’s dominance in the crypto market remains significant, with USDT holding a market capitalization of $140 billion. The stablecoin is involved in over 80% of crypto transactions, according to a U.S. Treasury study, cementing its central role in crypto transactions worldwide.

Despite these successes, Tether has faced challenges in European markets due to regulatory changes, particularly the European Union’s Markets in Crypto Assets Regulation (MiCA). This has led to a decline in confidence among certain exchanges, with platforms like Coinbase delisting USDT for European users until compliance issues are addressed.

In response to these regulatory pressures, Tether has shifted its operations to El Salvador, a Bitcoin-friendly country, where it secured a crypto license. The company plans to establish a headquarters there and invest in artificial intelligence as part of its long-term strategy.

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