Jack Anderson
July 31, 2024 16:35
Tether’s Q2 2024 certification shows record profits of $5.2 billion in the first half of 2024, the largest Treasury holdings ever, and consolidated capital of nearly $12 billion.
Tether Holdings Limited has announced the Q2 2024 assurance opinion from leading global independent accounting firm BDO. According to Tether, this assurance reaffirms the accuracy of Tether’s Consolidated Financial Statements and Reserve Report (CFFRR) and provides a detailed analysis of the assets held as token reserves and key consolidated financial figures as of June 30, 2024.
Record financial performance
Building on the momentum from Q1 2024, Tether reported net operating income of $1.3 billion in Q2 2024, and a record net income of $5.2 billion in the first half. The company attributed this performance to a strong and consistent income base derived primarily from investments in traditional asset classes, namely U.S. Treasuries.
Unprecedented ownership of Treasury bonds
In Q2 2024, Tether achieved unprecedented levels of direct and indirect ownership of US Treasuries, surpassing $97.6 billion. This milestone puts Tether ahead of Germany, the UAE, and Australia in terms of US Treasury ownership. Tether is now the 18th largest holder of US Treasuries and the third largest buyer of 3-month US Treasuries, behind the UK and the Cayman Islands. Given the trajectory of USDt adoption, we expect Tether to become the largest holder within the next year.
Integrated equity and transparency
In Q2 2024, Tether’s Group Equity increased by $520 million, despite an unrealized loss of $653 million due to the decline in the BTC price. This was partially offset by the positive performance of gold, which contributed $165 million in unrealized gains. Tether’s consolidated net assets reached an impressive $11.9 billion as of June 30, 2024.
A portion of Q2 earnings were reinvested in strategic projects to support the ecosystem, and $5.3 billion in excess reserves were maintained to ensure token stability. Over $8.3 billion of USDt was issued during the period, reaffirming Tether’s strong financial position with consolidated assets exceeding consolidated liabilities.
Key Financial Indicators
As of June 30, 2024, the following key financial indicators were reported:
- The reserve of Tether tokens in circulation reached $118,436,336,293.
- The company that issued the Tether tokens had debt of $113,101,998,938, of which $112,395,445,973 was related to the digital tokens issued.
- The value of the assets that make up the reserve fund was $5,334,337,355 more than the liabilities.
- Investments in sustainable energy, Bitcoin mining, data, AI infrastructure, P2P communication technologies, neurotechnology, education and other long-term proprietary investments are not considered part of the reserves backing the issued tokens.
Paolo Ardoino, CEO of Tether, said: “With the Q2 2024 certification, Tether has once again demonstrated its unwavering commitment to transparency, stability, liquidity and responsible risk management. As this latest report demonstrates, Tether continues to break records, reaching a new profit benchmark of $5.2 billion in the first half of 2024. With the Tether Group’s own capital reaching $11.9 billion, Tether has achieved impressive and unrivaled financial strength, allowing it to continue to lead the stablecoin industry in stability and liquidity, while also leveraging its expertise in diverse areas such as artificial intelligence, biotech and telecommunications.”
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