Tether's Excess Reserves Plunge by Half Amid Q2 Losses

Tether's financial report for Q2 has revealed a significant drop in its excess reserves. The company's net operating profit reached $1.5 billion, but this was largely offset by a 50% decline in excess reserves from $8.2 billion to $4.1 billion.

The root cause of the decline lies in the market value of Tether's assets, particularly Bitcoin and gold. The company reported a total negative financial result of $3.2 billion for the first half of the year, with an estimated loss of over $4 billion in Q2. This is largely due to unrealized losses from the decline in BTC and gold prices.

Tether's Bitcoin holdings fell by $800 million to $5.8 billion, while its gold reserves decreased by $1 billion to $18.8 billion, despite adding 14 tons of gold to its portfolio. The company has taken steps to minimize risks by reducing secured loans by $2.4 billion.

In a statement, CEO Paolo Ardoino emphasized that the company had a good quarter despite high market volatility. He highlighted that the number of USDT users reached a record 650 million, demonstrating the sustainability of operational profitability.