Tether reported a record quarterly profit of USD $4.52 billion for the first quarter of 2024, largely attributable to its investments in Bitcoin and gold.

Tether, the stablecoin issuer, generated its highest revenue in history during the first quarter of 2024, while the cryptocurrency market experienced a significant upward trend.

In a recently published financial report, the company behind USDT noted that the first three months of the year marked a significant milestone with a record net profit of $4.52 billion.

Much of this profit was a result of positive returns on Tether’s Bitcoin investments, the company noted. Bitcoin (BTC) posted a price increase of about 55% during the first quarter of 2024, achieving a never-before-seen price peak near USD $73,000 in March.

“Approximately $1 billion of this gain came from net operating income, primarily derived from U.S. Treasury holdings, while the remainder was from mark-to-market gains on Bitcoin and gold positions,” said USDT’s creator.

Tether has been increasing its bitcoin investments since reporting last year its desire to allocate up to about 15% of its earnings to buy BTC as part of a strategy aimed at strengthening the reserve portfolio.

Its most recent report detailed the company’s trends, showing that on March 31 this year, its reserves included about USD $5.3 billion in Bitcoin, USD $3.6 billion in gold, USD $104 billion in USDT, USD $1.8 billion in cash and equivalents, and USD $2.3 billion in other investments. The company also owned UDS $1.8 billion in cash and equivalents and USD $2.3 in other investments by the end of the quarter.

According to Tether, 90% of the tokens are backed

Tether also disclosed its liquid assets for the first time, reaching USD $11.37 billion as of March 31. This is a significant increase from the $7.01 billion in net worth posted at the end of December 2023, according to the company’s Q1 2024 certification report.

That report, which it says is endorsed by BDO, ratifies that 90% of the tokens launched by Tether are backed by cash and cash equivalents, ensuring the liquidity of its stable coin. During the first quarter, more than USDT 12.5 billion was issued, the report added.

The company went on to note that, at the end of the quarter, the value of the assets making up its reserves exceeded the value of liabilities by just over USDT6 billion.

Also, the report mentions Tether’s strategic investments, which total more than USD 5 billion as of the date of the report and cover sectors such as artificial intelligence (AI), data, Bitcoin mining and renewable energy. 

“With the first 2024 certification, Tether has demonstrated its unwavering commitment to transparency, stability, liquidity, and responsible risk management,” CEO Paolo Ardoino commented in the release. 

“As shown in this latest report, Tether continues to break records with a new earnings benchmark of $4.52 billion, reflecting the company’s absolute financial strength and stability. By disclosing not only the composition of our reserves but also our net worth of $11.37 billion, Tether is once again raising the bar in the cryptocurrency industry in the areas of transparency and trust,” said CEO Paolo Ardoino.