The post Tether’s Net Profit Drops By Nearly 50% In Second Quarter, Market Cap Aims For $84 Billion appeared first on Coinpedia Fintech News
Tether (USDT) continues to reign supreme among stablecoins, posting an impressive net profit of $850 million in the second quarter of 2023, according to a recent blog post. This remarkable financial milestone has sent its market capitalization toward $84 billion, further strengthening its position as the king of stablecoins.
Tether’s Net Profit Falls By Nearly 50%
Tether Holdings Limited has released its Q2 2023 assurance opinion, conducted by BDO, one of the top five global independent public accounting firms. This attestation reaffirms the accuracy of Tether’s Consolidated Reserves Report (CRR), providing a detailed breakdown of the Group’s assets as of June 30, 2023.
For the first time, it discloses Tether’s indirect exposure to US Treasuries through Money Market Funds, as well as its exposure to US Treasuries collateralizing its Overnight Repo.
In line with Tether’s ongoing commitment to transparency, the report also reveals an increase in its excess reserves by approximately $850 million. This brings Tether’s total excess reserves to an impressive $3.3 billion at the end of Q2.
It’s important to note that these excess reserves represent Tether’s own profits, which are not distributed to shareholders. Instead, the company has chosen to retain these funds in addition to the 100% reserves that Tether maintains to back all outstanding tokens.
However, this quarter’s net profit is nearly 43% less than the previous quarter’s net profit of $1.5 billion. As of June 30, Tether’s consolidated total assets reached an impressive figure of approximately $86.5 billion, according to the most recent report. Meanwhile, its consolidated total liabilities stood at $83 billion.
This data reveals that Tether’s excess reserves have surpassed $3 billion, setting a new record high. This figure notably exceeds Tether’s Q1 excess reserves, which were reported at $2.44 billion.
Tether (USDT) Aims For A New High In Market Cap
Tether (USDT), the leading stablecoin, is experiencing massive growth in its market capitalization, reaching new record highs, following the company’s generation of billions in profits earlier this year.
In response to recent problems in banking and crypto, Tether has shown the value of careful planning by keeping an extra 4% of money in its savings.
From April to June 2023, Tether made over $1B in profits, which is a big 30% increase from the previous quarter.
According to data from analytics firm IntoTheBlock, USDT’s market cap is swiftly nearing the $84 billion mark, a significant increase from its $66 billion valuation at the start of the year.
As USDT continues its upward trajectory, IntoTheBlock reports that its rivals in the decentralized finance (DeFi) sector are implementing enhancements aimed at drawing in more users. The analytics firm notes that USD Coin (USDC), USDT’s primary competitor and the second-largest stablecoin by market cap, has faced challenges following the downfall of Silicon Valley Bank (SVB) in March.