Simply put
- Tether announced a second-quarter profit of $4.9 billion.
- CEO Paolo Ardoino hinted at a new venture tailored for the US market.
- The stablecoin continues to have backing from Bitcoin and precious metals.
Tether shared its second-quarter profit of $4.9 billion on Thursday. CEO Paolo Ardoino hinted at a new venture focused specifically on the US market in a recent social media post.
In the months ahead, the company, headquartered in El Salvador, aims to develop businesses that will create “best-in-class product suites” particularly for the US. This, I think, could be quite interesting.
The company revealed that its operations generated $5.7 billion in the first half of this year, which is an increase of 9.6% compared to the same timeframe last year.
With a significant $127 billion exposure to US Treasury securities, Tether noted that it is among the largest holders of US debt, similar to Saudi Arabia’s holdings from May, according to the Treasury Department.
The latest report from Tether comes shortly after new US regulations aimed at providing a legal pathway for companies, like Tether and its competitor Circle, that issue dollar-pegged tokens.
In a document released on Thursday by accounting firm BDO, it was stated that Tether’s assets include $8.9 billion in Bitcoin and $8.7 billion in precious metals. Its stablecoin primarily relies on support from $105 billion in US Treasury assets, making up about 64% of its total reserves.
Previously, there were concerns about Tether’s compliance with US regulations. Back in February, JP Morgan analysts speculated that Tether may have had to liquidate some Bitcoin to meet reserve requirements. At that time, Ardoino referred to these analysts as “salty.”
The company pointed out that the way Tether’s reserves are structured showcases how private initiatives can align with public financial aims, serving as a link to secure dollar liquidity.
Tether’s market capitalization stands at approximately $163 billion, which is significantly higher than Circle’s $64 billion stablecoin, as per data from a crypto provider.
Tether is also ramping up investments in companies such as Twenty One Capital and online platforms like Rumble, while also extending funding to Adecoagro, a farming operation in South America.
Earlier in the week, Twenty One announced that it had received 5,800 Bitcoins from Tether, amassing a total of 43,500 Bitcoins valued at around $5.2 billion, positioning it as one of the largest Bitcoin funding firms globally since it began acquiring assets in May.
