Tether Reports $1B Profit, $5.6B Reserves, USDT Supply Grows 5% in Q1 2025 Strategy Posts $4.2B Loss, Announces $21B Stock Offering for Bitcoin Accumulation Senate Fast-Tracks GENIUS Act for Federal Stablecoin Rules
1min read Tether, the issuer of the world’s largest stablecoin, reported a $1 billion operating profit in the first quarter of 2025. The company disclosed a $5.6 billion cushion in excess reserves, according to its latest financial report. Tether holds $98.5 billion in U.S. Treasury bills and another $23 billion in cash equivalents, including repurchase agreements. Its stablecoin USDT grew by $7 billion in circulating supply over the quarter, reaching a market cap of $149 billion as of May 1. Despite a decline in its reserve surplus from $7.1 billion in the fourth quarter of last year, Tether continues to allocate capital to tech and infrastructure investments, with over $2 billion funneled into renewable energy, artificial intelligence, peer-to-peer communication tools, and data infrastructure.
Strategy, the tech firm turned bitcoin holding giant led by Michael Saylor, reported a $4.2 billion loss in the first quarter of 2025. The loss was driven by a $5.9 billion writedown on its BTC holdings as the price of the asset slid earlier this year. Despite the loss, the company is doubling down on its approach. Strategy announced a new $21 billion at-the-market stock offering, its second of that size, to continue accumulating the cryptocurrency. As of April, the company owns 553,555 BTC, acquired for $37.9 billion, at an average price of $68,459. The firm boosted its long-term bitcoin performance targets, raising its BTC Yield goal—the ratio of BTC to outstanding shares—from 15% to 25%. It also increased its BTC Dollar Gain target to $15 billion, up from $10 billion. In Q1, the company reported an 11% BTC Yield and a $4.1 billion gain based on market value changes.
U.S. Senate Majority Leader began the process to expedite consideration of the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, which seeks to introduce federal rules for companies that create these dollar-pegged tokens. The GENIUS Act is the Senate’s version of stablecoin legislation, closely aligned with a parallel effort moving through the House. By fast-tracking the bill, aims to limit delays and speed the legislation to the Senate floor. The move follows a strong bipartisan vote in the Senate Banking Committee, which approved the bill 18-6. The House Financial Services Committee passed its version in April. The bill’s sponsor, Senator Bill hagerty, said in a statement he’s working to update the bill to help keep digital asset innovation in the U.S. and ensure foreign firms face the same regulatory standards. It’s supported by Senator tim Scott, who chairs the Senate Banking Committee.
