Tether Holdings Limited reported a record net profit of $13 billion for 2024, driven by strategic investments and increased reserves.
Financial Results and Strategy
In 2024, Tether achieved a net profit of $13 billion, with total equity surpassing $20 billion. The company's reserve buffer grew to $7 billion, confirmed by auditor BDO. Assets rose to $157.6 billion against liabilities of $137.6 billion. The company's strategic investments were focused on Bitcoin mining, AI infrastructure, and renewable energy projects.
Expansion into New Markets
USD₮ issuance grew by $45 billion, including $23 billion in Q4, maintaining a 68% market share. Tether enhanced regulatory compliance efforts by securing a Digital Asset Service Provider license in El Salvador, making it the new headquarters. Simultaneously, integration with Bitcoin's Lightning Network enabled reduced fees and improved transaction speed.
Criticism and Outlook
Despite significant achievements, Tether faces criticism for concentration risk in U.S. debt exposure. However, the company asserts that its reserves exceed redemption demands by $7 billion. The Lightning Network integration also enables users to transact without intermediaries, potentially reducing reliance on Ethereum-based stablecoins.
Tether demonstrated significant financial strengthening and market influence expansion in 2024. However, ongoing criticisms about risk require careful reserve management and strategic planning.