Tether posts $1B in Q1 operating profit

Tether has recorded an impressive $1 billion in operating profit for the first quarter of 2025, showcasing the stablecoin giant's continued financial strength despite recent crypto market turbulence.

This profit primarily stems from Tether's strategic investments in U.S. Treasury holdings, which have reached a historic high of nearly $120 billion - positioning the company among the world's top holders of U.S. government debt.

While the Q1 performance remains robust, it represents a significant decrease from the exceptional $6 billion profit reported in Q4 2024, which had been inflated by substantial unrealized gains from Bitcoin and gold holdings.

As of March 31, 2025, Tether's balance sheet reveals total assets of $149.3 billion against liabilities of $143.7 billion, resulting in $5.6 billion in excess reserves that serve as a crucial safety net beyond the 1:1 backing required for its USDT tokens.

This conservative approach to reserve management, verified by global accounting firm BDO, demonstrates Tether's commitment to maintaining stability and liquidity even as it navigates volatile market conditions.

The company's growing influence is further evidenced by a $7 billion increase in USDT circulation during the quarter and the addition of 46 million new user wallets, representing a 13% quarterly growth in its active user base.

Operating now under regulatory oversight in El Salvador, Tether continues to balance prudent financial management with strategic investments in emerging technologies, allocating over $2 billion to sectors like artificial intelligence, renewable energy, and digital infrastructure - all while keeping these ventures separate from the funds backing its flagship stablecoin.

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