Tether Reports $1.5B Profit As Reserve Buffer Shrinks

Tether posted a strong $1.5 billion net operating profit for the second quarter, according to its latest BDO attestation. Despite this gain, the company saw its excess reserve cushion fall to $4.11 billion, which is roughly half of what it held at the end of the first quarter. Total assets reached $187.75 billion against $183.64 billion in liabilities as of June 30.

The decline in the reserve buffer was primarily driven by lower market prices for gold and Bitcoin. While Tether increased its actual holdings of both assets during the quarter, their mark to market value dropped as gold fell 15 percent and Bitcoin dipped to $58,600 from $68,200. These two assets now account for nearly 13 percent of the company total reserves.

CEO Paolo Ardoino highlighted the company stability throughout the volatility, noting that USDT remains fully backed. Tether also reduced its secured lending by $2.38 billion during the period. However, the wait for a full audit continues, as the firm reported that its engagement with a Big Four accounting firm is still in progress.

Traders should watch for future updates on the audit process, as this remains a key point of comparison against competitors like Circle. With Tether now holding over 60 percent of the stablecoin market share, its ability to maintain transparency remains a central topic for the broader crypto ecosystem.