Tether Reports $13 Billion Profit in 2024, Driven by Bitcoin and Gold Investments

Tether, the cryptocurrency firm behind the largest stablecoin USDT, announced a record-breaking year with a group-wide net profit of $13 billion in 2024. This substantial profit surge is attributed to the company’s significant investments in U.S. Treasuries, gold, and Bitcoin.

Financial Performance and Profit Sources

According to Tether’s latest quarterly attestation, verified by accounting firm BDO Italy, the company generated $13 billion in net profits for the year. Of this amount:

• $7 billion originated from Tether’s extensive holdings in U.S. Treasuries and repurchase agreements (repos).
• $5 billion resulted from the unrealized appreciation of Tether’s investments in gold and Bitcoin (BTCUSD).
• $1 billion was contributed by other investment avenues.

Asset Holdings and Reserves

Tether International Limited and Tether Limited, the company’s stablecoin issuer arms, reported total assets of $143.7 billion against liabilities of $136.6 billion. This results in excess reserves of $7 billion backing its stablecoins. Notably, Tether’s holdings in Treasury bills increased to $94.5 billion, strengthening its financial stability.

Additionally, Tether expanded its Bitcoin holdings in the last quarter of 2024, reaching nearly 84,000 BTC valued at approximately $7.8 billion by year-end. This marks the first increase in Bitcoin holdings since March, reflecting Tether’s strategic investment decisions amidst fluctuating cryptocurrency markets.

Market Position of USDT

Tether’s USDT remains the fourth-largest cryptocurrency, boasting a market capitalization of $140 billion. USDT serves as a crucial infrastructure component for digital asset trading and is increasingly utilized in developing regions for payments, remittances, and savings in U.S. dollars. Despite its prominence, USDT has faced regulatory challenges, with several exchanges delisting or suspending USDT for EU users in response to the Markets in Crypto-Assets (MiCA) regulations. This has led to a reduction in the token’s supply within the European market.

Strategic Moves and Future Outlook

In a strategic move to align with favorable regulatory environments, Tether announced plans to relocate its headquarters to El Salvador in 2025. Under the leadership of President Nayib Bukele, El Salvador has emerged as a crypto-friendly nation, attracting numerous cryptocurrency firms seeking a supportive ecosystem.

Tether’s decision to move to El Salvador underscores its commitment to expanding its global presence and leveraging the country’s progressive stance on cryptocurrency. This relocation is expected to enhance Tether’s operational capabilities and further solidify its position in the rapidly evolving digital asset landscape.

Tether’s impressive $13 billion profit in 2024 highlights the company’s robust investment strategies and its pivotal role in the cryptocurrency market. With substantial holdings in U.S. Treasuries, gold, and Bitcoin, Tether continues to demonstrate financial resilience and adaptability. As the company navigates regulatory challenges and pursues strategic relocations, it remains a key player in shaping the future of digital asset trading and stablecoin utilization globally.