Tether’s excess reserves fell sharply during the second quarter of 2026 despite continued growth in the supply and user base of USDT. The financial report published on July 31 showed that the reserve cushion had declined from $8.23 billion at the end of the first quarter to $4.11 billion. The company’s results were also affected by lower valuations of its gold and bitcoin holdings.

As of June 30, Tether controlled assets worth $187.75 billion, while its total liabilities amounted to $183.64 billion, according to an attestation prepared by accounting firm BDO. The difference between these figures represented the issuer’s remaining excess reserves. Although the company continued to hold more assets than liabilities, its financial buffer contracted by roughly half over the three-month period.

Tether reported approximately $1.5 billion in net operating profit for the quarter. This result was primarily generated by income from US Treasury securities and reverse repurchase agreements. The operating figure, however, did not include changes in the market value of assets such as bitcoin and physical gold.

The amount of USDT in circulation increased by $446 million and reached $184.6 billion. The stablecoin retained more than 60% of the overall market, confirming its leading position in the sector. Tether chief executive Paolo Ardoino said the number of users had grown by more than 30 million and surpassed 650 million.

The company also continued to expand its physical gold holdings. During the quarter, Tether purchased an additional 14 tonnes, raising its total reserves from 132.2 tonnes to 146.2 tonnes. Despite the increase in volume, the estimated value of the position fell from $19.84 billion to $18.84 billion.

At the end of June, Tether valued its gold at $4,008.02 per ounce. This was approximately 15% below the level used in its March calculations. As a result, the company recorded a lower valuation even though the actual quantity of metal in its reserves had increased.

A similar trend was seen in Tether’s bitcoin portfolio. The company added 1,796 BTC during the quarter, bringing its total holdings to 98,933 BTC. Nevertheless, the estimated value of the cryptocurrency position declined from $6.62 billion to $5.8 billion.

US Treasury bills remained the largest component of the reserves, with a total value of $114.96 billion. Reverse repurchase agreements accounted for another $25.62 billion. At the same time, Tether reduced the volume of secured loans by $2.38 billion to $13.45 billion.

The company’s announcement emphasized net operating profit, but the capital statement contained a less favorable overall result. After asset revaluations and other balance-sheet changes were taken into account, Tether recorded a loss of $3.17 billion for the first half of 2026. Net capital inflows during the same period amounted to $943 million.

Tether had previously reported a profit of $1.04 billion for the first quarter. The Block estimated that the company may have posted a loss of more than $4 billion between April and July. The report did not provide a detailed explanation of which factors, apart from falling gold and bitcoin valuations, contributed to the negative result.

The latest figures differ significantly from the company’s performance a year earlier. In the second quarter of 2025, Tether reported net profit of $4.9 billion. The weaker result comes as the wider stablecoin market faces renewed pressure: by the end of July, the sector’s total capitalization had fallen by $10 billion from its May peak, marking the largest monthly contraction since the collapse of Terra in May 2022.