Tether Reports $4.9B Net Profit in Q2, Invested $4B in U.S. Initiatives
Tether International Ltd., the entity behind the leading stablecoin USDT, reported a substantial second-quarter net profit of $4.9 billion. This profitability is underscored by robust reserves exceeding liabilities. BDO’s attestation reveals over $162.5 billion in reserves against $157.1 billion in liabilities (issued USDT tokens), resulting in a $5.4 billion excess reserve position.
A significant portion of these reserves, exceeding $127 billion, is allocated to U.S. Treasuries, encompassing direct holdings and investments like money market funds and overnight reverse repurchase agreements. This substantial Treasury exposure reflects the company’s increased USDT issuance, exceeding $13 billion during the quarter.
The company’s financial success extends beyond the immediate quarter. Year-to-date recurrent profits reached $3.1 billion, augmented by a further $2.6 billion in mark-to-market gains from appreciating gold and Bitcoin (BTC) holdings. Tether’s reserves include approximately $8.9 billion in BTC, equivalent to over 83,200 tokens as of June 30th.
Notably, Tether is strategically deploying its earnings into diverse sectors. Approximately $4 billion has been allocated to U.S.-based initiatives focused on artificial intelligence, renewable energy, and digital communications. These investments include a stake in XXI Capital, a Bitcoin treasury firm slated for a public listing via a merger with a Cantor Fitzgerald-backed special purpose acquisition company (SPAC), CEP. Further investments encompass the video-sharing platform Rumble and the development of Tether’s cryptocurrency wallet.
This financial performance and strategic diversification occur amidst a rapidly evolving regulatory landscape for stablecoins. The recent passage of the GENIUS Act in the U.S. signifies a growing emphasis on stablecoin regulation. Tether’s CEO, Paolo Ardoino, has confirmed the company’s commitment to compliance with these new regulations, including plans to launch a domestically compliant version of its stablecoin. This proactive approach positions Tether for continued growth within the increasingly structured stablecoin market.
