Today, Tether Holdings Limited (BVI) released its assurance opinion for the first quarter of 2024, conducted by BDO, a leading global independent accounting firm.
The most recent attestation as of 31 March 2024, discloses additional financial information of Tether Group which is no longer limited to the reserves backing Tether Fiat-denominated stablecoins. The new report provides an overview of the entire Group’s financial strengths complementing the information provided in the former Reserve report which has become a section of this new enlarged and more transparent report.
Building on the momentum from Q4 2023, the first quarter of 2024 marked a significant milestone for the group with a record net profit of $4.52 billion.
The main contributing entities are those in charge of issuing Stablecoins and managing the respective reserves where approximately $1 billion of this profit stemmed from net operating profits, primarily derived from US Treasury holdings. The remainder of reported profits were comprised of mark-to-market gains in Bitcoin and Gold positions. Additionally, Q1 2024 showcased the Group’s unprecedented achievement in increasing both direct and indirect ownership of U.S. Treasuries, now in excess of $90 billion. Indirect exposure was calculated to include overnight reverse-repurchase agreements collateralized by US Treasuries, as well as investments in US Treasuries through money market funds.
Furthermore, as part of its steadfast dedication to transparency, the Group unveiled its net equity for the first time, revealing an impressive $11.37 billion as of March 31, 2024. This reflects a notable uptick from the recorded equity of $7.01 billion on December 31, 2023. The report highlights a $1 billion increase in excess reserves maintained as a buffer to support the Company’s stablecoin offerings, pushing the total to nearly $6.3 billion.
In regard to the Reserves backing fiat-denominated stablecoins, BDO further confirmed that Tether-issued tokens are backed by Cash and Cash Equivalents at an impressive 90%, underscoring its commitment to upholding liquidity within the stablecoin ecosystem. Additionally, in the first quarter alone, over $12.5 billion in USDt was issued.
The Reserves Report (RR) section of the new report reiterates Tether’s strong financial position,
The Management of the Company asserts the following as of 31 March 2024:
The Reserves for Tether tokens in circulation amount to US$ 110,289,406,409.
The liabilities of the Companies issuing Tether tokens amount to US$ 104,027,539,692 of which US$ 104,019,279,735 relates to digital tokens issued.
The value of the assets composing the Reserves as of 31 March 2024, exceeds the value of the liabilities of the Companies issuing Tether tokens by USD 6,261,866,717.
The chart below shows a visualization of the Reserves as of 31 March 2024.
