Saturday, August 1, 2026

Tether claims $1.5B profit, but hidden math reveals a $4.2B hit that halved its safety cushion in 90 days

Tether's second-quarter materials report $1.5 billion in net operating profit, earned mainly from Treasuries and repo activity. However, the attached reserve

  • Tether reported a $1.5 billion net operating profit but a hidden calculation suggests a $4.2 billion loss in Q2, significantly reducing its safety cushion.
  • The reduction in Tether's equity cushion, from $8.23 billion to $4.11 billion, was primarily driven by a decline in asset values, particularly gold and Bitcoin, due to fair-value accounting.
  • The article highlights concerns about Tether's reserve transparency and the thin margin of its collateral, questioning its stability despite claims of profitability and de-risking.

Topics: Asset types, Risk default, Transparency audits, Stablecoins digital cash, Credit counterparty risk, Proof of reserve

Tags: #tether #usdt #stablecoin #reservereport #financialresult #assetvaluation #cushioncompression #treasuries #repoactivity #gold

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