Tether Thrives Despite EU Exit, Reports $5.2 Billion Profit in H1 2024

• Tether attributes its record H1 revenues and Q2 earnings to recent strategic investments.
• USDT has increased its market cap by roughly $25 billion since the start of 2024.
• Tether is reinvesting in AI, biotech, sustainable energy, financial infrastructure, and Bitcoin mining.

In its Q2 report, stablecoin provider Tether (USDT) reported record growth for the first half of 2024, signaling that European Union regulation woes and market exits have failed to impact the firm’s financial health.

Notably, Tether’s solid earnings come despite not having made significant Bitcoin (BTC) investments since Q1 2024. Instead, the firm’s broad and ambitious investment strategy into fields such as artificial intelligence (AI) and Bitcoin mining infrastructure is paying off.

Tether’s Q2 2024

As per its July 31 post from Tether, the firm has had a record-breaking $5.2 billion in profits for H1 2024.

Propping up this figure, the report highlights that Q2 2024 profits reached $1.3 billion, another best-ever result for the firm. Celebrating the firm’s growth, Tether CEO, Parolo Ardoino, described Tether as “a once-in-one-hundred-year-opportunity, in a lengthy post to X.

“Finally, we realize that our company grew and reached new, almost unimaginable, levels. It’s truly humbling to find ourselves in the position to build everything our imagination could dream.”

The report highlights that Tether’s financial health remains sound regardless of regulatory headwinds, as experienced in the European Union with its Markets in Crypto Assets (MiCA) regulation. The EU’s sweeping crypto legislature has caused several exchanges to delist USDT from their European arms, which called into question Tether’s fiscal longevity.

Notably, Tether attributed part of its solid Q2 figures to its recent strategic investments, which seem to have included a small departure away from its regular purchase of Bitcoin.

Less Bitcoin Buying

Perhaps one of the report’s standout elements was that Tether has seemingly slowed or halted any significant Bitcoin buying activity.

As of June 30, Tether’s attestation report shows its Bitcoin balance at $4.73 billion, which is lower than its previous report. In its Q1 2024 attestation, it reported Bitcoin reserves of $5.37 billion as of March 31 .

This is reflected in – what is believed to be – Tether’s primary BTC wallet , which shows little change between April and today. That said, BTC was trading at just above $70,000 on March 31 and $60,900 on June 30, explaining the sizeable difference in balance. That said, some still question the validity of this claim, such as Matt Ahlbord , who wrote:

“Is it revealed anywhere how many Bitcoins they bought/acquired? And will this figure be tracked on a quarter by quarter basis as well? Aside from your tweet here, I don’t see any further confirmation of this in the attestation document.“

Though it is unclear why, at this point, Tether has decided to break from a trend of regular BTC purchases, it does come as part of its commitment to expanding beyond stablecoins. As seen with its recent rollout of new products and bold new investment strategies, Tether is beginning to look more like a Web3 infrastructure/venture capital firm.

More Bitcoin Mining

Notably, this includes Tether’s ever-increasing presence in the Bitcoin mining business. This also came as part of a broader effort to grow its computing power to 1% of the BTC mining network.

In 2023, Tether made a string of investments into the sector throughout 2023, including a November purchase of Europe’s biggest BTC miner. At the time, the firm said it had set out to invest $500 million to build mining facilities and place investments in other mining initiatives.

Earlier that year, the firm said it was participating in a $1 billion initiative to construct mining facilities in El Salvador , amongst other countries. It hasn’t lost momentum, either. In May 2024, the firm stepped further into Bitcoin mining, investing $100 million into Bitdeer, a Bitcoin mining firm with sites in Europe and South Asia.

Seemingly, Tether’s strategy is paying off. While the complications and pressures of the EU’s MiCA regulations are beginning to have some effect, Tether’s financial health remains in glowing condition for now.