Tether's Q1 2025 Profit Drops 83% to $1B Amid Bitcoin, Gold Losses
1min read Tether, the issuer of the USDT stablecoin, reported a significant drop in profits for the first quarter of 2025, despite maintaining a robust investment portfolio. The company announced that it made over $1 billion in profit from its traditional investments during the first quarter, a sharp decline from the $6 billion profit reported in the previous quarter. This decrease in profit can be attributed to the absence of substantial gains from Bitcoin and gold, which had contributed significantly to the previous quarter's earnings.
The company's investments in U.S. Treasurys reached nearly $120 billion by the end of March, marking the highest level in its history. This investment includes both direct holdings and indirect exposure through money market funds and reverse repurchase agreements. Direct investments in Treasurys amounted to approximately $99 billion at the end of the first quarter. These investments have provided Tether with steady returns, helping to balance out the volatility in the crypto market.
Tether's USDT remains the world's largest U.S. dollar-backed stablecoin, with around $150 billion in circulation. The company regularly releases quarterly reports to provide transparency on the reserves backing USDT. The latest report, confirmed by a global accounting firm, underscores Tether's continued dominance in the stablecoin market. The company's ability to maintain a substantial investment portfolio and generate profits, even in a challenging market environment, highlights its financial strength and strategic investment approach.
Ask Aime: "Has Tether's profit drop affected its USDT stablecoin performance?"
