Tether posts $2.5B in Q3 profits, with 2024 earnings reaching $7.7B

Stablecoin issuer Tether has delivered another quarter of record-breaking earnings, posting $2.5 billion in profits in the third quarter of 2024. 

According to its attestation report published on Oct. 31, the company’s consolidated profit in 2024 is now at $7.7 billion, with $14.2 billion in equity and total assets of $134.4 billion. 

Behind the results is the demand for its stablecoin Tether (USDT) and yields on US Treasury bonds that back its reserves. USDT’s circulation has grown nearly 30% in 2024, with an additional $27.8 billion worth of tokens issued this year— totaling $120 billion USDT in circulation. 

Tether’s reserves in cash and cash equivalents now amount to over $105 billion, most of which are US Treasury bills, equivalent to $102.5 billion. This represents a 5% increase compared to its US Treasury portfolio of $97.6 billion in July.

Tether’s stockpile of US debt ranks the company among the 18 largest global holders, above Germany, Australia, and the United Arab Emirates.

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According to Tether, its reserves have risen to over $6 billion in 2024, an increase of 15% over the past nine months. The total assets kept in its reserves amounted to nearly $125 billion, while total total liabilities of about $119 billion stemming from token issuance.

In 2021, the US Commodities and Futures Trading Commission (CFTC) fined the company a $41 million civil monetary penalty for misrepresenting its stablecoin backing. On similar grounds, it also reached a $18.5 million settlement with the Office of the New York Attorney General.

The company’s results in the quarter are also backed by the performance of its gold holdings, which are said to have generated approximately $1.1 billion in unrealized profits in Q3. 

Tether also holds an additional 7,100 Bitcoin (BTC), worth nearly $500 million at the time of writing, along with a portfolio of invested startups across a range of industries, such as renewable energy, Bitcoin mining, artificial intelligence, telecommunications, and education.

As a company, Tether recently completed 10 years, with significant market share growth over the past two years, largely due to tighter regulatory oversight in the United States since the FTX collapse in November 2022.

The company has improved its collaboration with US authorities and onboarded the Federal Bureau of Investigation (FBI) to its platform in 2023. 

Related: Stablecoins and the dollar: Allies or adversaries in the new financial era?