Tether Reveals Record Profits and Significant Bitcoin Holdings

By: Eva Baxter

Tether, the prominent issuer of the USDT stablecoin, has recently disclosed substantial financial achievements alongside its increasing investment in Bitcoin. In the latest report, Tether announced a staggering $13 billion in profits for the year 2024, underpinned by strategic investments and a robust reserve backing for its stablecoin. The organization revealed it holds a total of 83,758 bitcoins, valued at $7.8 billion, contributing significantly to its profits.

The company's financial strategy not only hinges on Bitcoin but also encompasses an impressive array of reserves, worth over $143 billion, ensuring its USDT tokens are amply backed. The majority of these reserves are held in U.S. Treasuries, amounting to $113 billion, coupled with traditional investments and other assets like gold, which generated approximately $5 billion in unrealized profits.

As per the assurance opinion conducted by global accounting firm BDO, these reserves significantly exceed the $137.6 billion total liabilities, leaving Tether’s reserve buffer at over $7 billion. This economic security underscores Tether's commitment to stability and trust within the digital asset space, further bolstered by recent strategic moves such as obtaining the Digital Asset Service Provider (DASP) license in El Salvador.

In 2024, Tether issued $45 billion worth of USDT, with a notable surge in the fourth quarter amounting to $23 billion, hitting a milestone of 400 million users worldwide. Additionally, Tether’s involvement in innovative initiatives, like its partnership with LayerZero to introduce a multichain stablecoin, indicates continued expansion and adaptability in an evolving cryptocurrency landscape. The organization also aims to enhance its market influence by investing in areas like renewable energy, Bitcoin mining, artificial intelligence, telecommunications, and education.