Tether pulled in $1.5 billion in net operating profit during the second quarter, yet its safety buffer between what it owes USDT holders and what it actually holds got cut roughly in half. The company disclosed Friday that reserves now exceed liabilities by just $4.11 billion, down from $8.23 billion three months earlier.
The gap opened up because profit and the reserve cushion live in different corners of the balance sheet. Treasuries and repurchase agreements generated the earnings. Meanwhile, the buffer absorbed losses on assets Tether spent two years piling up. Gold dropped about 15% to just over $4,000 an ounce, shrinking that position from $19.84 billion to $18.84 billion. Bitcoin's price in the report fell to $58,600 from $68,200, cutting the BTC holdings from $6.62 billion down to $5.80 billion.
Tether bought through both slides. The company added 14 tons of gold, bringing its stash to 146.2 metric tons, and scooped up about 1,796 BTC to reach 98,933 coins. Those two holdings together now sit near $24.6 billion, roughly 13% of total assets. Against the $184.6 billion of USDT in circulation, the remaining buffer works out to about 2.2%.
Audit Still Missing
CEO Paolo Ardoino framed the quarter as a stress test passed. "Through all of the volatility, USD₮ remained fully backed with our reserves still exceeding liabilities by $4.11 billion," he said. Tether also trimmed secured lending by $2.38 billion, or 15%, though it didn't name borrowers or collateral.
What's missing is any sign of the Big Four audit the company hired back in March. The quarterly filing only notes that the audit process "continued." The distinction matters more than it sounds. An attestation, which is what BDO provided, confirms numbers on a single date. A full audit examines how assets were valued and managed across the entire period. Circle, which issues USDC, already publishes audited accounts.
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