Tether's Excess Reserves Plummet 50% in Q2
Tether's excess reserves have taken a significant hit in recent months. According to its latest reserve report, Tether's excess reserves fell by $4.12 billion, or 50.1%, during the second quarter to $4.11 billion as of June 30. This reduction narrows the cushion above its liabilities.
The company's excess reserves stood at $8.23 billion on March 31. Liabilities changed by about $106 million during the quarter. Total assets were approximately $187.75 billion and liabilities were about $183.64 billion for the period ended June 30.
Tether's reserve breakdown included $114.96 billion in U.S. Treasurys, $25.6 billion in reverse repurchase agreements, $18.84 billion in precious metals, $5.8 billion in Bitcoin (BTC), $13.45 billion in secured loans and $3.76 billion in publicly traded stocks.
The decline of precious metals and BTC together represented approximately $24.6 billion. The gold price used in the reserve calculations declined 14.1% from $4,668.06 an ounce on March 31 to $4,008.02 on June 30. Bitcoin fell from $68,200 to $58,600 over the same period.