Tether Publishes Q1 2025 Attestation, Revealing Strong Financial Performance Despite Crypto Market Turbulence

According to a press release today, the stablecoin giant recorded over $1 billion in operational profit during the first quarter, while its U.S. Treasury holdings neared a historic $120 billion

Tether, the stablecoin giant, has published its Q1 2025 attestation by global accounting firm BDO, showcasing strong financial performance despite crypto market turbulence during the quarter.

The figures, disclosed on Wednesday through a press release, highlight Tether’s increasing dominance in the crypto ecosystem.

Tether Sees $1B Profit From Treasury Holdings Yield

According to BDO attest, operating profit came in at over $1 billion during the first quarter of 2025. This compares to an exceptional $6 billion profit reported for Q4 2024.

However, the prior quarter’s total included substantial unrealized gains from Bitcoin and gold, inflating the headline figure. In contrast, the more modest Q1 result arose mainly from U.S. Treasury holdings yield, with gold performance nearly offsetting crypto market volatility.

Meanwhile, Tether’s exposure to U.S. Treasuries continued to grow quarter-over-quarter, climbing from $113 billion in Q4 2024 to nearly $120 billion in Q1 2025. This places Tether among the world’s top holders of U.S. government debt.

The company is consistently pushing to bolster liquidity and minimize risk through investments in short-term government debt to maintain the stability of its flagship token, USD₮.

Slower Figures But Robust Operational Condition

Total assets as of March 31, 2025, stood at roughly $149.3 billion, and liabilities amounted to $143.7 billion, leaving a surplus of nearly $5.6 billion in excess reserves.

This figure, though lower than the $7 billion buffer reported at the end of Q4 2024, still showcases strong risk management. The slight dip may be attributable to asset reallocation and changing market conditions but does not suggest a deterioration in financial health.

In addition, USD₮ issuance increased by about $7 billion during the quarter, a slower pace compared to the $23 billion issued in Q4 2024. However, the number of active user wallets grew by 46 million, a 13% quarter-over-quarter rise, indicating ongoing adoption and confidence in Tether’s stability.

Tether’s total liabilities continue to be nearly entirely tied to digital tokens issued, confirming the company’s commitment to maintaining a fully reserved model.

Specifically, the firm’s reserves have consistently been backed by cash and cash equivalents at a high ratio, with the remainder spread across gold, Bitcoin, and proprietary investments not included in token backing.

Furthermore, the company has now allocated more than $2 billion to emerging sectors like renewable energy, artificial intelligence, and data infrastructure.

Notably, the Q1 2025 report was also subject to review and procedures performed in accordance with Generally Accepted Auditing Standards in the United States of America and applied in accordance with International Financial Reporting Standards, as well as the legal and regulatory framework in El Salvador.