Tether Holdings Limited, the issuer of the world's largest stablecoin, Tether USD (USDT), has announced a remarkable financial performance in the first quarter of 2024. The company's assurance opinion, conducted by BDO, revealed a record-breaking net profit of $4.52 billion for the period, driven primarily by its holdings in Bitcoin (BTC), gold, and US Treasury securities.

Paolo Ardoino, CEO of Tether, expressed his satisfaction with the company's unwavering commitment to transparency, stability, liquidity, and responsible risk management. "With the first attestation of 2024, Tether has demonstrated its unwavering commitment to transparency, stability, liquidity, and responsible risk management," he stated. "As shown in this latest report, Tether continues to shatter records with a new profit benchmark of $4.52 billion, reflecting the company's sheer financial strength and stability."

Ardoino further highlighted Tether's efforts to raise the bar in the cryptocurrency industry in terms of transparency and trust. "In reporting not just the composition of our reserves, but now the group's net equity of $11.37 billion, Tether is again raising the bar in the cryptocurrency industry in the realms of transparency and trust," he added.

Tether's net profit of $4.52 billion represents a staggering 56% increase compared to the $2.9 billion reported in the fourth quarter of 2023, which was the company's previous quarterly profit record. Additionally, Tether disclosed its net equity, which stood at an impressive $11.3 billion as of March 31, 2024, a substantial increase from the $7 billion recorded at the end of the previous year.

The report also noted a $1 billion increase in excess reserves, reaching $6.4 billion, further solidifying Tether's financial position. Regarding the backing of Tether USD (USDT), BDO's attestation confirmed that 90% of Tether-issued tokens are backed by cash and cash equivalents, ensuring ample liquidity for its stablecoin. During the first quarter, Tether issued over $12.5 billion in USDT, reflecting the growing demand for its stablecoin.

In addition to its strong financial performance, Tether reported investments amounting to $5 billion in the first quarter of 2024, spanning various sectors such as artificial intelligence (AI) and data, renewable energy, peer-to-peer (P2P) communication, and Bitcoin mining. This investment represents a remarkable 680% quarter-on-quarter growth, as Tether reported $640 million in investments during the fourth quarter of 2023.

Tether's record-breaking profit, robust reserves, and diversified investment portfolio highlight the company's resilience and commitment to maintaining its position as a leading stablecoin issuer.