Tether posts $1.5 billion operating profit in Q2 as reserve buffer falls by half
Tether reported a $1.5 billion operating profit for Q2, though its excess reserve buffer decreased significantly to $4.11 billion. The company also adjusted its holdings in gold and bitcoin amid market price fluctuations.
Why it matters
As the issuer of the world's largest stablecoin, Tether's financial health and reserve transparency are vital for the stability of the broader cryptocurrency market.
The issuer of USDT, the world’s largest stablecoin, reported holding $187.75 billion in assets against $183.64 billion in liabilities as of June 30, leaving it with $4.11 billion in excess reserves, according to the BDO attestation released Friday. Those excess reserves are down from just over $8.23 billion three months earlier.
The second quater report shows Tether increased its physical gold holdings by 14 tons to roughly 146.2 metric tons from 132.2 tons during the quarter. The value of those holdings, however, fell to $18.84 billion from $19.84 billion because the price of gold dropped about 15% to just over $4,000 per ounce.
The company lifted bitcoin holdings by roughly 1,796 coins to 98,933 BTC. The value of those holdings fell to $5.80 billion from $6.62 billion as the bitcoin price used in the reports declined to $58,600 from $68,200, during the period.
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