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Tether’s reserve cushion appears to shrink sharply over 90 days

A reserve-report review suggests Tether’s implied second-quarter financial result was negative $4.2 billion, cutting the cushion above liabilities from $8.2 billion to $4.1 billion.

Reported · Written up by our desk · Stablecoins

Tether reported $1.5 billion in net operating profit for the second quarter, driven largely by Treasuries and repo activity, according to CryptoSlate.

However, CryptoSlate says the figures in Tether’s attached reserve report do not reconcile, showing a negative $3.17 billion first-half financial result. By backing out the positive $1.04 billion from the first quarter, CryptoSlate calculates an implied negative $4.211 billion second-quarter financial result, after an $89 million net capital offset.

The cushion above roughly $184 billion of liabilities is estimated to have fallen in three months, from $8.23 billion to $4.11 billion. CryptoSlate links part of the reduction to asset declines tied to fair-value pricing, including gold moving from $4,668.06 to $4,008.02 per ounce and Bitcoin from $68,193.95 to $58,642.15 between March 31 and June 30.

Even with the compression, Tether’s June 30 report still shows assets exceeding liabilities by about $4.109 billion, leaving it “reserve collateralized” throughout, while cushion share of total liabilities drops from roughly 4.49% to 2.24%. CryptoSlate also notes secured loans fell by about 15% over the period, from $15.83 billion to $13.45 billion, which Tether framed as deliberate de-risking.

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