In yet another show of financial power, Tether wraps up the period with solid figures to prove its fiscal resilience. closed the second quarter The stablecoin giant's new fiscal details reveal a net operating income of $1.3 billion, elevating their cumulative net profit for the first half-year to $5.2 billion.
Tether's asset holdings are impressive, with $4.7 billion in Bitcoin and $3.8 billion in gold.
The latest profits reflect a growth from prior quarters, which recorded approximately $4.5 billion as per Tether's Q1 report. Furthermore, their group equity surged by an additional $520 million during Q2 2024, taking it to $11.9 billion.
“Tether has smashed previous records with a standout profit of $5.2 billion for the opening half of 2024,” stated CEO Paolo Ardoino.“With group equity reaching $11.9 billion, Tether proves its peerless financial strength, keeping it at the forefront of the stablecoin sector's stability and fluidity.”
Big is Getting Bigger
The lion's share of Tether's income stems from investments in conventional asset classes, primarily involving U.S. Treasuries. This portfolio, both directly and indirectly, has now expanded to around $97.6 billion, placing Tether among the top 20 U.S. Treasury holders, previously reporting over $90 billion in similar assets.
Though Treasuries are the primary investment, Tether diversifies by holding substantial amounts of Bitcoin and gold, with current holdings amounting to $4.7 billion in Bitcoin and $3.8 billion in gold. leading stablecoin USDT Based on CoinMarketCap's figures, Tether's USDT is the market leader in the stablecoin arena. The company disclosed an issuance of over $8.3 billion in USDT during Q2 2024.
Part of Tether's Q2 earnings has been channeled into strategic initiatives to bolster its ecosystem. Beyond stablecoin operations, Tether has made investments in sectors like AI, renewable energy, and Bitcoin mining.
Earlier this year, Tether allocated about $500 million for expanding into Bitcoin mining, with plans to establish mining sites in Uruguay, Paraguay, and El Salvador.
Tether seeks to decentralize Bitcoin mining while boosting its capacity to 1% of the Bitcoin network's hashrate by the year 2025.
In May, a significant investment of $150 million was announced by Tether into Bitdeer, a major player in the mining sector. This partnership aims to support Bitdeer's data center growth and the innovation of new mining technologies.
This agreement forms part of Tether’s ongoing initiatives to enhance its efficiency and capacity in the realm of Bitcoin mining.
According to a fresh report by CCData, the stablecoin market cap has been on a rising trajectory for ten months straight, reaching over $164 billion by July 2024.
Competition From USDC
Along with the rising market cap, there's an increasing foothold; stablecoins now account for nearly 7% of the entire crypto market. Conversely, trading volumes fell by 8.35% in July, potentially influenced by MiCA regulations and broader market activities.
USDT maintains its position as the leading stablecoin, commanding a market dominance of 69.6%, but
there has been notable expansion in both market cap and trading volume. The second-largest stablecoin now makes up approximately 73.5% of the top 10 stablecoins' market share. Circle’s USDC USDC takes the center stage on the Solana blockchain, standing out as the premier stablecoin on Solana and surpassing USDT in trading volumes.
A report by Bankless highlights that USDC's prominence on Solana is boosted by strategic partnerships and projects, such as Solend, Superteam, Circle’s Cross Chain Transfer Protocol (CCTP), and Circle’s Web3 Services.
Moreover, USDC's swift adherence to MiCA regulations has spurred its trading activities on centralized platforms.
The effects of MiCA compliance are increasingly visible. While it has yet to cause a dent in USDT's dominance, this could shift as time unfolds. Tether hasn't yet registered as a stablecoin issuer under MiCA, banning it from offering services to EU residents under the new rules.
Nicholas Say comes from Ann Arbor, Michigan. Having traveled extensively, he's spent years in Uruguay and now calls the Far East home, with his writing scattered across the Internet, emphasizing realistic progress and next-gen human technologies.
