Tether's Excess Reserves Plummet by $4 Billion Amid Q2 Financial Woes

Tether's excess reserves have plummeted by more than $4 billion in Q2, according to its latest financial report. The company's assets now exceed its liabilities by just $4.1 billion, down from a surplus of $8.2 billion at the end of the first quarter.

The decline is largely due to a sharp year-on-year deterioration in Tether's financial results, which posted a negative $3.2 billion financial result for the first half of 2026. This implies a loss of more than $4 billion, given that it reported a net profit of $1 billion in Q1.

Tether CEO Paolo Ardoino touted the company's 'great second quarter' despite volatile markets, highlighting that its USDT user base reached a new all-time high of over 650 million. However, the value of Tether's bitcoin and precious-metals holdings fell during the quarter, with its bitcoin position declining to $5.8 billion from $6.6 billion.

The company also reported a decline in secured-lending exposure by $2.4 billion. While it added 14 tons of gold, the value of its precious-metals position fell to $18.8 billion from $19.8 billion. Bitcoin and gold both shed more than 10% of their price during Q2.