Tether Sees Significant Revenue Growth in 2024 Projections Amid Market Volatility
Tether Reports Record-Breaking $13B Profit for 2024
Tether, the company behind the largest stablecoin USDT, has announced a record-breaking $13 billion group-wide net profit last year.
Tether (USDT) is a popular stablecoin pegged to the US Dollar, designed for global transactions.
It was launched in 2014 by Bitfinex and has since become one of the most widely used cryptocurrencies.
Tether's value is supposed to mirror the price of the 'US dollar' , making it a reliable store of value and medium of exchange.
With its large market capitalization and widespread adoption, Tether plays a significant role in the cryptocurrency ecosystem.
This significant increase in profits can be attributed to several factors, including rising prices of gold and bitcoin. ‘We are pleased with our results,’ said a spokesperson for Tether.
Rising Bitcoin and Gold Prices Contribute to Profits
The firm’s profits were boosted by the appreciation of its gold and bitcoin holdings, which accounted for approximately $5 billion of the total profits. Additionally, the company’s vast U.S. Treasuries and repo holdings generated around $7 billion in profits. Other investments contributed a further $1 billion to the overall profit.
Increased Bitcoin Holdings
Notably, Tether increased its bitcoin holdings last quarter for the first time since March 2024. As of year-end, the company held nearly 84,000 BTC worth approximately $7.8 billion. This significant increase in bitcoin holdings is a positive sign for the company and the cryptocurrency market as a whole.
Excess Reserves Backing Stablecoins
According to Tether’s latest quarterly attestation signed by accounting firm ‘BDO Italy’, the group’s stablecoin issuer arms disclosed $143.7 billion of assets in reserve against $136.6 billion in liabilities. This adds up to $7 billion of excess reserves backing its stablecoins. Treasury bills in the reserve rose to $94.5 billion.
USDT Market Capitalization and Regulatory Developments
Tether’s USDT is the fourth-largest cryptocurrency with a market capitalization of over $140 billion. However, several exchanges have delisted or announced plans to suspend USDT for EU users due to MiCA regulations. This has led to a decrease in the token’s supply.
USDT, also known as Tether, is a stablecoin pegged to the value of the United States dollar.
It was created in 2014 by Bitfinex and is now managed by Tether Limited.
USDT is designed to maintain a 1:1 ratio with the US dollar, making it a popular choice for traders and investors looking to minimize exchange rate risks.
With a large market capitalization, USDT is widely available on many cryptocurrency exchanges and can be used for various purposes, including trading, remittances, and payments.
Expansion Plans
In related news, Tether this year announced plans to move its headquarters to El Salvador, a bitcoin-friendly nation state in Central America that has become an emerging hub for crypto firms under President Nayib Bukele‘s leadership.
Nayib Armando Bukele Ortez is the current president of El Salvador, a position he has held since June 2019.
Born on July 24, 1981, in San Salvador, Bukele rose to prominence as a politician and businessman before entering politics.
He won the presidential election with 53% of the vote, defeating the former president's daughter.
Bukele's presidency has been marked by controversy, including his handling of gang violence and his decision to take on more executive powers.
Despite criticism, he remains popular among some Salvadorans for his efforts to combat corruption and improve the economy.
