Tether continues to impress with its astounding quarterly profit figures, surpassing even industry giants like BlackRock. The firm’s latest reports reveal a net profit of $12.72 billion since Q4 2022, outpacing BlackRock’s $9.83 billion.
However, it’s crucial to note that Tether’s profit calculations include the income from US Treasurys, along with mark-to-market gains from bitcoin and gold holdings. This fusion of realized and unrealized gains may inflate Tether’s reported numbers, as highlighted in their blog posts.
The recent quarterly attestations showcase the extensive reserves backing Tether’s circulating tethers, amounting to approximately $118.44 billion by the end of Q2. This surplus of over $5 billion further strengthens the tether ecosystem.
While Tether’s reserves consist predominantly of short-dated US Treasurys, other significant holdings include reverse repurchase agreements, money market funds, secured loans, and bitcoin. Notably, Tether has progressively increased its bitcoin reserves from 2% to 4% over the past year, reflecting a strategic diversification approach.
The substantial profits reported by Tether stem from various sources, with a significant portion generated through investments in US Treasurys. The firm’s impressive financial performance, coupled with its limited workforce, underscores the efficiency of its operations.
During periods of heightened market volatility, such as Bitcoin’s price surges, Tether’s profits tend to escalate significantly. The first quarter of 2024 saw Tether amass remarkable profits, fueled by the meteoric rise in bitcoin prices.
Despite the potential for profit fluctuations based on asset valuation changes, Tether remains a formidable player in the crypto industry, constantly evolving its investment strategies to maximize returns. As Tether continues to expand its asset portfolio and explore new avenues for growth, its profitability is poised to soar, positioning it as a key player in the global financial landscape.
