Tether announces $5.2 Billion Net Profit in the First Half of the Year
Tether stablecoin issuer in its latest quarterly attestation report achieved a record net profit of $5.2 billion in the first half of the year despite facing a decline in market share.
Tether's Q2 2024 attestation is out.
— Paolo Ardoino 🤖🍐 (@paoloardoino) July 31, 2024
Another great quarter.
A short summary as of 30 June 2024:
* $1.3 billion in net operating profit.
* $520 million increase in Tether's Group own equity, bringing it to a total of $11.9 billion.
* $5.33 billion in excess reserves
* more than… https://t.co/f0vb4VfmYB
Tether Holdings Limited received its assurance opinion for the second quarter (Q2) of 2024 from leading international independent accounting firm BDO, according to a press release announcing the company's second quarterly attestation for the year. In addition to the traditional comprehensive breakdown of the digital assets held as token reserves, the attestation validates the accuracy of Tether's Consolidated Financials Figures and Reserves Report (CFFRR) and provides significant consolidated financial data of the group as of June 30, 2024, including the group equity.
The post said that the company built on the success of the first half of the year, achieving a record-breaking net profit of $5.2 billion with a net operating profit of $1.3 billion in the second quarter of 2024—Tether's highest ever. While keeping a sizable amount of excess reserves worth $5.3 billion to further ensure the stability of the token, a portion of the Q2 profits were reinvested in strategic projects to support the ecosystem.
With $11.9 billion in total equity held by Tether Group, the company has demonstrated exceptional and unmatched financial strength, which allows it to maintain its position as the leader in the stablecoin industry in stability and liquidity while also leveraging its experience in different areas, including biotechnology, artificial intelligence (AI), and telecommunications, Tether CEO Paolo Ardoino said.
As part of its unwavering commitment to transparency, the Group also disclosed its consolidated net equity as of June 30, 2024, revealing an impressive $11.9 billion. More than $8.3 billion in USDt was issued in the second quarter. Tether's strong financial position is reaffirmed in the CFFRR, where consolidated assets exceed consolidated liabilities.
According to the Kaiko Analytics report, the token's market share on centralized exchanges (CEXs) has dropped from 82% to 74%. This coincides with the European Union preparing to implement the new Markets in Crypto Assets (MiCA) regulation, which is expected to impact stablecoins such as USDT. This loss highlights Tether's possible regulatory obstacles as well as the escalating competition in the stablecoin space. According to the report, well-known alternatives like Circle's USDC will gain traction as the stablecoin market is diversifying.
Disclaimer: This information should not be considered financial advice by any means. Please do your own research before making any investment decisions. The views in the articles are personal opinions only. Whale Insider is not responsible for any financial losses incurred.