Tether Posts Record Net Profit Amid Shrinking Reserve Buffer
Tether's quarterly attestation report for Q2 2026 reveals a $1.5 billion net operating profit, up from $1.04 billion in Q1. Despite this increase, the company's excess reserves shrank by nearly half to $4.11 billion.
The buffer decline is separate from Tether's recent investment activity, which included deals funded through its investment portfolio. The company invested $20 million in Mercado Bitcoin's onchain expansion in Brazil and led a $7 million funding round for payroll-stablecoin startup Pact Labs.
Treasury bills and repo income remain the largest component of Tether's reserve base, with the company describing itself as one of the world's largest buyers of U.S. Treasuries. A shrinking cushion on top of this position doesn't threaten USD₮'s backing but does narrow the margin for absorbing volatility in gold or Bitcoin without a repeat contraction.