Tether’s third-quarter attestation for 2024, conducted by auditor BDO, showcases record profits, growth in reserves, and significant U.S. Treasury investments.
Tether’s Q3 Results Position It Among Leading U.S. Treasury Holders
In its most recent attestation, Tether Holdings Limited reports a net profit of $2.5 billion for the third quarter, raising its total consolidated profit for the first nine months of the year to $7.7 billion. The report, prepared by BDO, supports Tether's Consolidated Financial Figures and Reserves Report (CFFRR) as of September 30, 2024.
Tether's equity has reached an unprecedented $14.2 billion, with consolidated assets amounting to $134.4 billion. This achievement, according to Tether, solidifies its leadership in the stablecoin sector and aligns with its long-term strategic vision. The company's stablecoin reserves peaked this quarter, with $120 billion USDT in circulation, reflecting a 30% increase since the start of 2024.
BDO’s attestation confirms these reserves, revealing that Tether holds $102.5 billion in U.S. Treasuries, positioning it hypothetically among the top 18 U.S. Treasury holders globally, should it be considered a nation. Tether asserts that its reserve assets, managed through Tether International Limited and Tether Limited, exceed its liabilities by more than $6 billion.
The composition of Tether’s reserves, detailed in the attestation, includes over $105 billion in cash, cash equivalents, and other assets, with $102.5 billion allocated to U.S. Treasuries. The report also indicates an increase in the reserve buffer to over $6 billion, attributed to strategic asset management and unrealized gains of $1.1 billion in gold during Q3.
Tether claims this strategy is aimed at boosting user confidence in the face of market volatility. The attestation further highlights Tether Investments Limited, which operates independently from stablecoin reserves, holding investments in renewable energy, bitcoin mining, and artificial intelligence (AI). These assets are currently valued at $7.7 billion, with Tether Investments additionally possessing 7,100 BTC, indicating involvement in the cryptocurrency market beyond core reserves.
Tether CEO Paolo Ardoino commented on the outcomes, citing reserve growth and transparency as evidence of Tether’s robust financial structure and risk management practices. "Achieving the $120 billion USDT milestone and reporting $102.5 billion in U.S. Treasury exposure underscores the company's unmatched financial strength," Ardoino stated.
This attestation follows a Wall Street Journal report suggesting that the U.S. government was investigating the stablecoin issuer. Tether has strongly denied these allegations, branding the WSJ article as “irresponsible” journalism.
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