Tether's Reserve Buffer Plunges 50% Amid Gold, Bitcoin Volatility

Tether's second quarter results show that the stablecoin issuer earned $1.5 billion in net operating profit, driven primarily by returns from US Treasury holdings and repurchase agreements.

The company's excess reserves fell by half to $4.11 billion at the end of Q2, after a record $8.23 billion at the end of Q1.

Tether's USDT supply reached $184.6 billion, representing over 60% of the global stablecoin market, while net issuance grew by only $446 million during the quarter.

The company increased its gold holdings to 146.2 metric tons and its bitcoin holdings to 98,933 BTC, but both positions lost value as gold fell 15% and bitcoin declined from $68,200 to $58,600 during the period.