Tether Announces First Quarter 2024 Certification: Reports Record Profit of $4.52 Billion, Highest-ever Treasury Bill Holding, and Total Group Capital of $11.37 Billion
May 1, 2024: -Today, Tether Holdings Limited (BVI) announced its first quarter 2024 assurance opinion conducted by BDO, one of the world’s leading independent accounting firms. The latest certification, as of March 31, 2024, discloses additional financial information for the Tether Group, including but not limited to the reserves backing the Tether fiat stablecoin. The new report provides an overview of the group’s overall financial strength, complementing the information provided in the previous Reserve Report, which is now part of this expanded and more transparent new report.
Building on the momentum from the fourth quarter of 2023, the first quarter of 2024 was a significant milestone for the Group, with record profits of $4.52 billion.
The main contributors were the entities responsible for issuing stablecoins and managing their respective reserves, with approximately $1 billion of this profit coming primarily from net operating income from holdings of U.S. Treasuries. The remainder of the reported profit was made up of gains on Bitcoin and gold positions. Additionally, the first quarter of 2024 demonstrated the Group’s unprecedented success in increasing its direct and indirect holdings of US Treasuries, which currently exceed $90 billion. Indirect exposure was calculated to include overnight reverse repurchase contracts collateralized by U.S. Treasury securities and investments in U.S. Treasury securities through money market funds.
Furthermore, as part of our unwavering commitment to transparency, the Group has published its net worth for the first time, revealing it to be a staggering $11.37 billion as of March 31, 2024. This reflects a significant increase from the capitalization of $7.01 billion recorded on December 31, 2024. The report highlights that excess reserves maintained as a buffer to support the company’s stablecoin offerings have increased by $1 billion, bringing the total to nearly $6.3 billion.
Regarding reserves backing fiat-denominated stablecoins, BDO further confirmed that Tether-issued tokens are backed by a staggering 90% of cash and cash equivalents, increasing the Highlighted BDO’s commitment to maintaining liquidity. Additionally, over $12.5 billion USDt was issued in the first quarter alone.
The Reserve Report (RR) section of the new report reiterates Tether’s strong financial position.
Our management asserts that as of March 31, 2024:
The reserves of Tether tokens in circulation amount to USD 110,289,406,409. The debt of the company issuing Tether tokens amounts to USD 104,027,539,692, of which USD 104,019,279,735 is related to the digital tokens issued. As of March 31, 2024, the value of the assets comprising the reserve exceeds the value of the debt of the companies issuing Tether tokens by USD 6,261,866,717.
The graph below visualizes the reserves as of March 31, 2024.
The graph below shows the continued growth of U.S. Treasuries and cash and cash equivalents as a percentage of total Tether tokens outstanding.
Tether Group’s strategic investments, totaling over $5 billion as of the reporting date, include various sectors such as AI and data, renewable energy, P2P communications, and BTC mining. Although these investments are not detailed in the new report supporting fiat-denominated issuance tokens, they highlight Tether’s unwavering dedication to its mission.
“With its first certification in 2024, Tether has demonstrated its unwavering commitment to transparency, stability, liquidity, and responsible risk management. As demonstrated in this latest report, Tether Reflecting pure financial strength and stability, our reserve structure continues to break records with a new profit benchmark of $4.52 billion, as well as the Group’s net assets now standing at $11.37 billion. “By reporting that this is the case, Tether is once again raising the bar in the crypto industry in the realm of transparency and trust,” said Paolo Ardoino, CEO of Tether.
For more information, please see our latest assurance opinion and consolidated reserve report here.
Tether may adapt its reserve composition in the face of changing market conditions and community needs.
(For readability, USD amounts are sometimes rounded to two decimal places)
