Tether Holdings, the issuer of the world’s largest stablecoin USDT, reported a record net profit of $4.52 billion in the first quarter of this year.

Tether also announced for the first time that its net equity (capital minus liabilities) as of March 31 was $11.37 billion. This is a significant increase from the $7.01 billion in net capital registered at the end of December 2023, according to Tether’s first-quarter third-party attestation report.

Of this substantial increase in positions, approximately $1 billion was generated from operating benefits from holding U.S. Treasury bond positions, and the remaining $3.52 billion came from the company’s earnings from its Bitcoin and gold positions.

According to CoinMarketCap, Tether’s USDT is the world’s largest stablecoin, with a total market value of more than $110 billion, and USDT worth $12.5 billion was issued in the first quarter of this year alone.

The Tether report also revealed that the excess reserves used to support the company’s stablecoin product buffer increased by US$1 billion. In other words, Tether’s excess reserves are now approaching US$6.3 billion.

The report further revealed that as of March 31, the amount of liabilities related to "issued digital currencies" exceeded $104 billion, and the value of Tether's reserve assets exceeded the amount of liabilities by more than $6.2 billion.

According to data from on-chain intelligence platform Arkham Intelligence, Tether’s Bitcoin wallet “bc1q” currently holds 75,354 Bitcoins, with a total value of more than $4.38 billion.

Tether’s most recent purchase of Bitcoin was on March 31, when it bought 8,888 Bitcoins worth $626 million on cryptocurrency exchange Bitfinex.

This makes Tether’s “bc1q” wallet the seventh largest Bitcoin holder in the world, according to BitInfoCharts. The company has said it will invest 15% of net profits in Bitcoin to diversify the assets collateralized by the USDT stablecoin.

While Bitcoin fell below the $60,000 mark, Tether still has an unrealized profit margin of over 91% on its books and is worth over $2 billion, according to CoinStats Portfolio Tracker data.

〈Tether Q1 net profit hit a new high of US$4.52 billion! Most of them come from Bitcoin and gold. This article was first published in "Block Guest".