Stablecoin Issuer Tether Reports $2.5B Profit in Q3

TL;DR

• Tether reported a $2.5 billion profit in the third quarter of the year.

• The stablecoin issuer also holds over $100 billion of U.S. Treasuries.

Tether’s Q3 Profit Hits $2.5B

Tether, the leading stablecoin issuer in the world, reported its Q3 earnings on Thursday. In its report, Tether revealed that it earned $2.5 billion of group-wide net profits in Q3, bringing its total profit this year to $7.7 billion.

This latest development comes as Tether’s total market cap hits the $120 billion mark. According to Tether, of the $2.5 billion profit, $1.3 billion was derived from the yield on U.S. Treasury holdings, while another $1.1 billion was from the unrealized appreciation of the company's gold holdings in the reserve. Tether benefited from the price of gold soaring by 15% in the last quarter. 

Tether International Limited and Tether Limited currently hold $125.5 billion of assets in reserve against $119.4 billion in liabilities as of September 30. Furthermore, excess reserves backing Tether's stablecoins rose to over $6 billion.

$105 billion of the reserve assets are currently held in cash and cash equivalents, including $84.5 billion in U.S. Treasury bills. Furthermore, Tether’s direct and indirect exposure to T-bills is now above $102 billion. The company also held $5 billion worth of gold and $4.8 billion in bitcoin (BTC) among reserve assets.

The company’s new arm, Tether Investments, is also recording massive growth. Tether Investments manages Tether’s investments in energy, mining, and artificial intelligence. It now has a net equity value of $7.7 billion, up from $6.2 billion in the previous quarter. Tether Investments now holds 7,100 bitcoin (BTC) worth nearly $500 million.

Tether’s USDT remains the leading stablecoin by market cap, more than triple the size of the second-largest stablecoin (USDC).