Tether reported a profit exceeding $1 billion in Q1 2025, a significant drop from $4.52 billion in Q1 2024, primarily caused by a decline in Bitcoin's value, which fell 12% over the same period. The company attributed its profitability to yields from its U.S. Treasury holdings, which account for 66% of its reserves. Tether continues to hold around $7.7 billion in Bitcoin, but market fluctuations have affected realized profits. Last year, Bitcoin's surge contributed greatly to Tether's record earnings, whereas this year’s lower Bitcoin price has resulted in decreased profits. Despite this, as of now, Bitcoin's price has rebounded slightly, hovering around $97,000. Tether now holds approximately $120 billion worth of U.S. Treasuries and is exploring options for a U.S.-specific stablecoin should regulatory changes impact its flagship USDT token. CEO Paolo Ardoino is also in discussions regarding comprehensive audits of the company's reserves in light of pending regulations.

Source 🔗