These divisions contributed significantly to Tether’s Q1 2024 earnings of $4.52 million

Earlier this week, the largest stablecoin issuing company, Tether, revealed that it made more than $4.52 billion in net profit in the first quarter of 2024. With the company expanding its operations recently, a substantial part of the profits came from its long duration. permanent companies and not newly created divisions.

Tether disclosed in a certification report that approximately $1 billion of its profits in the first quarter of 2024 came from entities charged with issuing stablecoins and managing related reserves.

Tether made a profit of $4.52 billion in the last quarter

In mid-April, Tether announced that it was expanding its framework beyond stablecoins. The company unveiled new divisions, including Tether Edu, Tether Power, and Tether Data, which would be responsible for digital skills education, sustainable Bitcoin mining operations, and strategic investments in emerging technologies.

Tether Finance, which has existed, will continue to lead the company’s stablecoin financial products and services. Tether disclosed that the $1 billion this division made last quarter came from net operating profit derived primarily from its U.S. Treasury holdings. During the quarter, Tether increased its direct and indirect ownership of US Treasuries through investments through money market funds and reverse intraday repurchase agreements.

The remainder of Tether’s Q1 2024 profits came from market value gains in the company’s Bitcoin and Gold positions. Notably, the company’s US Treasury holdings now exceed $90 billion.

“With the first certification of 2024, Tether has demonstrated its unwavering commitment to transparency, stability, liquidity and responsible risk management. As shown in this latest report, Tether continues to break records with a new point of profit benchmark of $4.52 billion, which reflects the company’s financial strength and stability,” said Paolo Ardoino, CEO of Tether.

For the other divisions, which include renewable energy, artificial intelligence, peer-to-peer communications and Bitcoin mining, Tether made strategic investments totaling $5 billion in the first quarter of 2024.

Additional $12.5 billion issued

Interestingly, Tether disclosed its net worth for the first time. The company witnessed a significant increase from $7.01 billion recorded at the end of the fourth quarter of 2023 to $11.37 billion as of March 31.

Meanwhile, Tether claims its stablecoin offerings saw a $1 billion increase in excess reserves, bringing the total to roughly $6.3 billion. The stablecoins issued by Tether are now 90% cash-backed and cash-equivalent. The company also issued an additional $12.5 billion last quarter.

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