Tether Reports Impressive Q3 Profit of $2.5 Billion and Surpasses $100 Billion in US Treasury Holdings

Tether Reports Impressive Q3 Profit of $2.5 Billion and Surpasses $100 Billion in US Treasury Holdings

Tether has announced a robust net profit of $2.5 billion for the third quarter of 2024, bringing its total earnings for the year to an impressive $7.7 billion. This strong performance has propelled the company’s equity to a record high of $14.2 billion this year. The stablecoin issuer noted a significant increase in the circulation of its USDT tokens, which reached nearly $120 billion during this quarter. This figure reflects a 30% rise in USDT issuance since the beginning of 2024, underscoring the growing demand for its stablecoin in the market.

In its financial update, Tether revealed that its reserves have now surpassed $105 billion in cash and cash equivalents, with approximately $102.5 billion invested in US Treasuries. If Tether were classified as a sovereign entity, it would rank among the top 18 holders of US government debt globally. The company has also increased its excess reserve buffer by 15% this year, bringing the total to over $6 billion. Tether’s gold holdings generated around $1.1 billion in unrealized gains during the quarter.

According to a financial report by BDO Italia, Tether International Limited and Tether Limited disclosed total assets of $125.5 billion against liabilities of $119.4 billion as of September 30, 2024. This robust asset position has enhanced Tether’s excess reserves that back its stablecoins to over $6 billion. Of the reserve assets, $105 billion consists of cash and cash equivalents, with $84.5 billion specifically invested in US Treasury bills. The company’s total exposure to T-bills, including direct holdings and investments through money market funds and reverse repurchase agreements, exceeded $102 billion. In addition, Tether reported $4.9 billion in gold and $4.7 billion in Bitcoin holdings, with its investment arm owning an additional 7,100 bitcoins.

In response to recent reports suggesting that US federal investigators are examining Tether for potential violations of sanctions and anti-money laundering laws, CEO Paolo Ardoino dismissed these claims as “old noise.” Tether has been collaborating with BDO Italia since July 2022 to provide regular updates regarding the assets backing its USDT tokens, aiming to enhance confidence among investors and regulators concerning the stability and transparency of its stablecoin.