Record profit-making stablecoin issuer Tether posts seasonal drop in Q2
Tether, the issuer of the most popular stablecoin, tether (USDT), reported a net profit of $1.3 billion for the second quarter of this year, 71% lower than the first quarter.
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Tether, the issuer of the most popular stablecoin, tether (USDT), reported a net profit of $1.3 billion for the second quarter of this year, 71% lower than the first quarter. However, this result is better than that of a year ago, solidifying the company's status as potentially the most profitable company in the world by profit per employee.
Quarterly profit also dropped in the second quarter of last year. In either case, the total net profit reached $5.2 billion in the first half of this year, which is more than double compared to H1 of 2023. However, according to an earlier announcement, the company made $4.52 billion in Q1 of this year, bringing the H1 result to $5.82 billion.
Should Tether CEO Paolo Ardoino respond to our request for comment on the numbers, we'll update the story.
The company attributes its results to "a strong and persistent revenue base from traditional asset-class investments (mainly US Treasuries)."
Tether is strengthening its position among US Treasury holders. The company claims that at the end of June, it directly and indirectly owned more than $97.8 billion in US Treasuries, surpassing Germany, the United Arab Emirates, and Australia. This ranks Tether 18th among countries holding US debt.
The company also held around $4.7 billion in bitcoin (BTC) a month ago.
Despite the seasonal drop, Tether still appears to be the most profitable company in the world when measured by profit per employee. According to Tether's LinkedIn page, the company has 11-50 employees. For comparison, investment banking giant Goldman Sachs, with around 40,000 employees, reached net earnings of $7.18 billion in the first six months of this year.
This year, Tether has intensified its diversification efforts from its stablecoin business. USDT's market capitalization now stands at more than $114 billion, a 34% increase from a year ago.
The company, which claims to maintain $5.3 billion in excess reserves to back its stablecoin, is also expanding into emerging technologies such as artificial intelligence and peer-to-peer platforms, neurotechnology, Bitcoin mining, education, and blockchain-powered solutions like the tokenization of traditional asset classes.
Tether stated that an unspecified portion of its second-quarter profits was reinvested in "strategic projects."