Tether’s Q1 Net Profit Hits $4.5B

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In January-March, Tether, the issuer of the stablecoin USDT, reported a record net profit of $4.52 billion. The income was primarily from interest on US Treasuries, which amounted to around $1 billion.

Additionally, direct investments in these instruments exceeded $74.2 billion, while the total cash and cash equivalents, including indirect repo transactions, amounted to $92.7 billion.

The remaining ~$3.5 billion of net profit was attributed to the increase in the value of Bitcoin positions by $3.65 billion and gold positions by $5.7 billion.

Tether’s equity capital also increased significantly to $11.37 billion from $7.01 billion as of December 31. The level of excess reserves saw a $1 billion increase, reaching $6.26 billion.

The volume of USDT issued in the first quarter of the year increased by $12.5 billion to a total of $110.3 billion. The auditor BDO confirmed that 90% of the tokens were backed by cash and cash equivalents.