Tether Releases Attestation Report, Records Net Profits In Q3

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As a seasoned crypto investor with over a decade of experience in this volatile and ever-evolving market, I must admit that the latest financial report from Tether has left me quite impressed. Having seen numerous ups and downs, it’s always refreshing to see a stablecoin issuer consistently demonstrating growth and profitability, particularly during these turbulent times.

In the third quarter of 2023, Tether published its report confirming another quarterly profit for their stablecoin operations. The primary contributors to this income were their investments in U.S. treasuries and gold, further extending their streak of profitable quarters, as they had also reported net profits in Q1 and Q2 of the year.

Tether Records $2.5 Billion Net Profits In Q3

The Q3 attestation report for Tether reveals that the company responsible for minting the stablecoin achieved a group net income of approximately 2.5 billion dollars, resulting in a consolidated profit of $7.7 billion over the initial nine months of this year. At present, the US Dollar Tether (USDT) issuer’s equity amounts to $14.2 billion, and its total assets are consolidated at an impressive $134.4 billion. Notably, these figures emerge as rumors circulate about the United States Department of Justice (DOJ) probing the stablecoin issuer.

As reported by the cryptocurrency company, these numbers represent a record peak (new highest point) for them. Tether announced that this remarkable expansion has strengthened its status as an influential figure within the industry, bolstered by substantial investments in key initiatives that align with their vision.

In Q3, the company’s stablecoin-issuing entities attained an all-time high (ATH) of nearly $120 billion in Tether (USDT) circulation. The USDT issuer specifically mentioned that this increase represents a 30% growth in the coins issued so far in 2024, amounting to approximately $27.8 billion in total gains for the company.

The stablecoin issuer’s reserves also reached new highs. Tether’s stablecoin issuing companies now hold over $105 billion in cash and cash equivalents, with $102.5 billion in direct or indirect exposures to US treasuries. The firm made $1.3 billion in profits from its exposure to these US treasuries and $1.1 billion from its gold holdings. Interestingly, the US Treasury recently noted that the growth in stablecoins is driving the demand for short-dated treasuries.

Presently, the company responsible for issuing USDT has its investment division managing a whopping $7.7 billion across various sectors. These sectors encompass renewable energy, Bitcoin mining, artificial intelligence, telecommunications, education, and more. Furthermore, this investment division also holds approximately 7,100 Bitcoins as part of their investments.

Paolo Ardoino Comments On Company’s Remarkable Growth

Speaking about their Q3 performance, Tether CEO Paolo Ardoino emphasized their unwavering dedication to “openness, ease of trading, and prudent risk control.” He also pointed out that surpassing the $120 billion USDT mark and disclosing a $102.5 billion exposure to US treasury bonds underscores their exceptional robustness.

To this point, the CEO of Tether has emphasized their company’s robust financial standing as the primary factor behind their decision to remain private for the time being. He posits that the main motivation for a company to become publicly traded is typically in search of additional capital or improved liquidity.

In my analysis, I recently came across a post from Ardonio where he delved deeper into his company’s growth trajectory. He disclosed an interesting statistic – approximately 330 million on-chain wallets and accounts have interacted with USDT. It’s important to note that this figure doesn’t account for the multitude of users who manage their USDT through centralized exchanges. Furthermore, he highlighted a significant trend: the number of new on-chain USDT wallets per quarter appears to be growing at an astonishing pace, surpassing 35 million new addresses each quarter.

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2024-11-01 00:22