Tether Halts Bitcoin Purchases Despite $1.3 Billion Q2 Profit

Tether, a prominent stablecoin issuer, disclosed a pause in Bitcoin acquisitions despite achieving a record $1.3 billion net operating profit for Q2 2024. The financial assurance, audited by BDO, a top global accounting firm, marked this shift.

Contrary to its usual buying pattern, Tether maintained its Bitcoin reserves at the previous quarter’s levels.

Tether Records All-Time High Profits in The First Half of 2024

This unexpected decision has raised queries among crypto enthusiasts, especially noted by user Matt Ahlborg.

In response to inquiries about the unchanged Bitcoin reserves, Paolo Ardoino, the CEO of Tether, clarified that the reserve report covers only the entities issuing the stablecoin. He added that Tether’s investment arm continued to purchase Bitcoin in Q2 2024.

“The reserves breakdown cover only the companies issuing the stablecoin, to provide the most granular information on what matters the most, but Tether’s investment arm among its 6.56 billion equity owns Bitcoin too,” Ardoino said.

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However, further details on these holdings or their on-chain traceability were not provided, sparking further discussion.

“Is it revealed anywhere how many Bitcoins they bought/acquired? And will this figure be tracked on a quarter by quarter basis as well? Aside from your tweet here, I don’t see any further confirmation of this in the attestation document,” Ahlborg asked.

Nevertheless, Tether’s overall financial health remains exceptionally strong, underscored by its substantial profitability and strong asset reserves.

The recent financial statement for Q2 2024 showcased significant achievements. Notably, Tether recorded a staggering $5.2 billion in net profit for the first half of the year. As of June 30, 2024, the group’s consolidated net equity stood at an impressive $11.9 billion.

Furthermore, Tether’s US Treasuries holdings reached an unprecedented $97.6 billion, elevating it to the 18th position globally for US debt ownership.

Tether’s management highlighted that the company’s assets significantly exceed its liabilities. The reserves for Tether tokens in circulation amounted to $118.4 billion, with liabilities at $113.1 billion. This positions Tether’s net asset over liability buffer at approximately $5.3 billion.

Over the quarter, Tether issued more than $8.3 billion in USDT, reaffirming its strong financial standing. Despite a $653 million unrealized loss from a dip in Bitcoin prices, net equity rose, partly thanks to a $165 million gain from its gold investments.

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Ardoino stressed Tether’s commitment to transparency and stability in his statement. He highlighted the financial strength that enables Tether to lead in terms of liquidity and stability. Ardoino also noted Tether’s growing influence in various sectors, including Artificial Intelligence, Biotech, and Telecommunications.