Tether Nets $5B Profits in 2024 According to Q2 Report

Tether Nets $5B Profits in 2024 According to Q2 Report

Stablecoin issuer Tether reported a record $5.2 billion in net profits for the first half of the year, with its flagship cryptocurrency, USDT, reaching new market cap highs. In the second quarter alone, Tether generated $1.3 billion in net operating profits, some of which it reinvested in strategic projects. USDT, valued at $114 billion, is crucial for crypto trading in developing countries to access US dollars.

According to a quarterly attestation by BDO Italy, Tether International Limited and Tether Limited held $118.4 billion in assets against $113.1 billion in liabilities as of June 30, resulting in $5.3 billion in excess reserves. The company’s US debt holdings totaled $97.6 billion, ranking 18th globally. Tether Investments, a separate entity focused on Bitcoin mining and AI, has a net equity value of $6.2 billion.

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Arbitrum To Expand Orbit Chains Beyond Ethereum

Arbitrum's Orbit tech stack is set to expand beyond the Ethereum ecosystem, with an Arbitrum governance proposal gaining 83% support from ARB holders. The proposal, which is likely to pass, aims to allow Orbit tech to be deployed on non-Ethereum chains such as Bitcoin, BNB Chain, and Cosmos, following interest from developers and users.

This builds on the Arbitrum Expansion Program launched in January, which enabled third-party projects to fork and modify Arbitrum's codebase for deployment on Ethereum-derived chains in exchange for a revenue-sharing arrangement. The expansion is expected to increase revenue for ArbitrumDAO, with new Orbit chains sharing 10% of profits.

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Grayscale Bitcoin Mini Trust 'BTC' Begins Trading

Grayscale Investments' new mini version of its Grayscale Bitcoin Trust (GBTC) began trading following approval from the US SEC. The spot Bitcoin exchange-traded product, trading under the ticker BTC, commenced at 4 a.m. ET. Zach Pandl, head of research at Grayscale, highlighted the potential investor interest in low-cost Bitcoin exposure, emphasizing the company's client-focused approach.

The mini trust, intended as a "spin-off" of GBTC, will distribute new shares to GBTC shareholders as it contributes Bitcoin to the trust. This launch comes amidst increased mainstream attention on crypto, driven by macroeconomic factors like anticipated FED rate cuts and political elections. Pandl noted that such trends typically boost assets like Bitcoin, during periods of expected dollar weakness.

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Mt. Gox Transfers Another $2.2 Billion to New Wallet

The Mt. Gox estate, responsible for billions in creditor funds, has transferred another big chunk of Bitcoin as it prepares to resolve a decade-long hack. Late Tuesday, approximately 33,964 BTC, valued at $2.25 billion, was moved to an unidentified wallet, according to blockchain analytics firm Arkham Intelligence. Additionally, $3.1 billion in BTC was shifted between two cold wallets.

Last week, exchanges including Kraken, Bitstamp, SBI VC Trade, Bitbank, and Coincheck finalized the return of funds to creditors. So far, over 17,000 creditors have received repayments in Bitcoin and Bitcoin Cash. Mt. Gox's main wallet still holds around 80 BTC worth $5.3 billion. These moves come amid a slight decline in Bitcoin's value, which has dropped 3% since the beginning of the week.

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Data of the Day

According to a recent report by CCData, the total market capitalization of stablecoins increased by 2.11% in July to $164 billion, marking the tenth consecutive monthly rise and the highest level since April 2022. This significant monthly increase suggests new capital inflows into the markets, as evidenced by the positive price movements of digital assets in July.

Conversely, trading volumes for stablecoin pairs on centralized exchanges fell by 8.35% to $795 billion by the 25th, continuing a four-month decline. However, end-of-month volumes are expected to rise due to increased volatility following the launch of spot Ethereum ETFs.

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More Breaking News

• US Ethereum ETFs saw net inflows of $34 million, ending a four-day losing streak, led by BlackRock's ETHA with a total of $118 million inflows.
• A16z Crypto led a $9 million Series A funding round for Daylight, a DePIN project that focuses on energy distribution.
• SEC Chair Gary Gensler should be fired, according to Cameron Winklevoss, who also blasted Kamala Harris's crypto "reset" as hollow promises.
• Alex Svanevik, founder of blockchain analytics platform Nansen launched IQ, a Solana-based meme coin, and reached $6 million in market cap within the first day.
• DraftKings is closing its NFT division in response to a class action lawsuit that claimed tokens on its marketplace were unregistered securities.

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