After an auditing process for 2024, Tether Holdings Limited, the company behind the U.S. dollar-pegged stablecoin $USDT, reported a yearly net profit exceeding $13 billion and achieved all-time high records in the fourth quarter, according to the global independent accounting firm BDO.
What’s the Significance? According to Tether, the audit findings reaffirm the accuracy of its Consolidated Reserves Report and provide a detailed breakdown of the assets held as reserves for the tokens issued.
Key Details: The profit gained makes the company’s value surpass $20 billion.
- However, it should be noted that the auditor’s report by BDO calls it a “group equity,” which is the sum of the value of the company itself and its subsidiaries considered as an entirety.
- For Tether, this growth in group equity resulted from investments in emerging sectors such as renewable energy, Bitcoin mining, artificial intelligence, telecommunications, and education.
The Profit: The auditor’s report detailed Tether’s $13 billion profit contribution as follows:
- $7 billion from U.S. Treasuries and repo agreements
- $5 billion from gold and Bitcoin ($BTC) holdings
- $1 billion from traditional investments
Q4 2024 Milestones: In the fourth quarter of 2024 alone, Tether achieved record-breaking numbers:
- Approximately $113 billion in direct and indirect holdings of U.S. Treasuries (U.S. government-issued bonds).
- Tether’s excess reserve buffer exceeded $7 billion for the first time, marking a 36% annual increase.
- Issued over $23 billion in new $USDT tokens, representing half of the total $45 billion issued in 2024.
By the Numbers: Other financial data of Tether as of December 31, 2024:
- $157.6 Billion: Group’s consolidated total assets
- $137.6 Billion:Group’s consolidated total liabilities
- $143,704,755,547: Reserves backing Tether tokens in circulation
- $136,617,485,006: Liabilities of the companies issuing Tether tokens
- Of which $136,613,782,874 relate specifically to digital tokens issued
- $7,087,270,541: Amount by which reserve assets exceeded the liabilities of the Tether-issuing companies
Key Quote:
“Tether’s Q4 2024 attestation reinforces our position as a global leader in financial transparency, liquidity, and innovation. With U.S. Treasury holdings surpassing $113 billion, a reserve buffer exceeding $7 billion, and $45 billion in new token issuance for the year, Tether continues to set the gold standard for stability and trust in the digital assets space. The Group Equity surpassed $20 billion. Our licensing milestone in El Salvador and investments in transformative sectors further highlight our unwavering commitment to driving financial inclusion and resilience.”
Paolo Ardoino, Chief Executive Officer, Tether
Zoom Out: Recently, Tether relocated its headquarters to El Salvador after securing licenses as a stablecoin issuer and Digital Asset Service Provider in the country.
Worth Reading: Also in 2024, Tether said that $USDT has reached a new milestone, with 109 million on-chain wallets holding the stablecoin.
- $USDT was also launched in The Open Network, the blockchain used for Telegram mini-apps, as announced by Tether CEO Paolo Ardoino and Telegram founder Pavel Durov during Token2049.
- In the Philippines, Tether collaborated with local crypto exchange Coins.ph in an aim to advance financial education in the Philippines, focusing on blockchain technologies, bitcoin, and stablecoins, by offering a range of educational programs, including workshops, online campaigns, and quizzes.
This article is published on BitPinas: $USDT Issuer Tether Records $13B Profit in 2024 Alone
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