Tether, a leading stablecoin issuer, announced a pause in Bitcoin purchases, despite reporting a record $1.3 billion net operating profit for Q2 2024. The financial report, audited by BDO, a top global accounting firm, marks a notable shift in Tether’s usual buying pattern.
Despite strong earnings, Tether maintained its Bitcoin reserves at the same level as the previous quarter. This unexpected move has sparked curiosity among crypto enthusiasts, including user Matt Ahlborg.
Addressing questions about the unchanged Bitcoin reserves, Tether CEO Paolo Ardoino explained that the reserve report covers only the entities issuing the stablecoin. He mentioned that Tether’s investment arm continued purchasing Bitcoin in Q2 2024, but did not provide further details on these holdings or their traceability.
Tether’s financial health remains robust, highlighted by impressive profitability and strong asset reserves. The Q2 2024 financial statement revealed a $5.2 billion net profit for the first half of the year. As of June 30, 2024, Tether’s consolidated net equity stood at $11.9 billion.
Additionally, Tether’s US Treasuries holdings reached $97.6 billion, ranking the company as the 18th largest holder of US debt globally. Tether’s assets significantly exceed its liabilities, with $118.4 billion in reserves for tokens in circulation and $113.1 billion in liabilities. This results in a net asset buffer of about $5.3 billion.
During the quarter, Tether issued over $8.3 billion in USDT, reinforcing its solid financial position. Despite a $653 million unrealized loss from a drop in Bitcoin prices, Tether’s net equity rose, partly due to a $165 million gain from gold investments.
Ardoino emphasized Tether’s commitment to transparency and stability, citing the company’s strong liquidity and stability. He also noted Tether’s growing influence in sectors like Artificial Intelligence, Biotech, and Telecommunications.