- Paolo Ardoino reaffirms Bitcoin’s value over Ethereum, highlighting its fixed supply and immutability as key advantages.
- Tether reports a record $1.3 billion Q2 profit, with U.S. Treasury holdings reaching $97.6 billion, boosting financial stability.
- Despite Ethereum’s recent struggles, Tether’s profits and strategic investments underscore their confidence in Bitcoin’s potential.
Tether’s CTO, Paolo Ardoino, highlighted Bitcoin’s advantages over Ethereum, emphasizing its fixed supply and immutability. He firmly stated, “Bitcoin is immutable. Only 21 million coins. Easy choice.”
This endorsement aligns with Tether’s strategy, as last year they announced plans to allocate 15% of their profits towards purchasing Bitcoin to bolster and diversify their reserves. Ardoino described Bitcoin as “a long-term store of value with substantial growth potential.”
Record-Breaking Profits and Bitcoin Investments
Despite Tether’s latest quarterly report showing no change in its Bitcoin reserves, the company achieved a record-breaking net profit of $1.3 billion. Ardoino clarified that Tether did buy Bitcoin through its investment arm in 2024. This affirmation reflects Tether’s strong belief in Bitcoin’s potential.
The criticism of Ethereum by Ardoino is not new. After the 2022 Merge upgrade, he said that Ethereum was still unable to match Bitcoin’s market share. He took issue with Ethereum’s frequent changes in plot. In addition, he brought up Ethereum’s dismal recent performance in comparison to Bitcoin.
Since reaching its peak in December 2021, the ETH/BTC pair has decreased by 45%. Even though a number of spot ETFs were approved in May, which caused a spike in price, Ethereum was unable to maintain its momentum.
Ethereum’s Struggles and Future Prospects
The future price action of Ethereum will likely depend on the level of inflows. So far, these have been underwhelming, partly due to outflows from Grayscale’s product.
Besides Ardoino’s insights, Tether has significant news. They reported a whopping $5.2 billion net profit for the first half of 2024. This announcement came as part of their Q2 2024 assurance opinion, verified by BDO, an accounting firm. The report claims that Tether’s financial figures are solid. It provides a detailed look at their reserves and assets as of June 30th, 2024.
In the second quarter alone, the company reportedly hit a net operating profit of $1.3 billion, their best result ever. CEO Paolo Ardoino stated, “Tether has achieved impressive and unmatched financial strength.” This strength enables it to lead the stablecoin industry in stability and liquidity.
Tether’s Financial Strength and Future Plans
Tether’s resilience also stems from a robust revenue stream, primarily derived from US Treasury bonds. Their U.S. Treasury holdings increased to $97.6 billion in Q2 2024, placing them as the 18th largest global holder of U.S. debt. They are now ahead of nations like Australia and Germany.
Tether’s Group Equity went up by $520 million in Q2 2024, despite a $653 million hit from falling Bitcoin prices. This loss was partly offset by a $165 million gain from gold. Tether’s consolidated net equity is now $11.9 billion. Moreover, a chunk of Tether’s Q2 profits was reinvested in strategic projects to support their ecosystem. They also kept $5.3 billion in excess reserves to ensure their token remains stable.
In Q2 2024, the company issued over $8.3 billion in USDT. Their Consolidated Financials Figures and Reserves Report (CFFRR) shows that their assets exceed their liabilities.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
