Tether's Reserve Soars Thanks to Bitcoin Surge

As of September 30, Tether's reserves surpassed its liabilities by a remarkable $7.95 billion, marking a $3.85 billion increase from the previous quarter. This substantial figure comes from Tether's latest third-quarter attestation, which was certified by accounting firm BDO.

The report highlights total assets reaching $191.45 billion against $183.5 billion in liabilities, predominantly consisting of tokens in circulation. Throughout this year, Tether's issuance of USDT has remained consistent at around $184 billion.

Bitcoin's Price Surge

While Tether did not provide specific reasons for this significant increase in reserves, the data suggests that the answer lies in the performance of Bitcoin and gold. Tether’s third-quarter report shows that Bitcoin’s value rose an impressive 42.6% during this period, climbing from $58,642 to $83,621 per coin. With Tether holding roughly 98,900 BTC—similar to its holdings in June—this price surge alone contributed about $2.47 billion to their reserves.

Additionally, gold prices also had a positive impact, witnessing a 3.7% increase to reach $4,157.41 per ounce and adding approximately $700 million to Tether's reserves. However, it's worth noting that the report indicates Tether might have reduced its gold holdings by about 3.4 tonnes since June, though it does not clarify if any gold was sold during this time.

Impact of Market Fluctuations

The fluctuations in both Bitcoin and gold also played a role in Tether’s reserves in the previous quarter. In the second quarter, Tether's excess reserves were halved to $4.11 billion due to a slump in both asset prices, with Bitcoin decreasing by approximately 14% and gold dropping around 14% as well. This was significant, costing Tether around $930 million from Bitcoin’s decline and approximately $2.8 billion from gold as it sank to $4,008 per ounce.

Despite the recent improvements, Tether's current reserves remain about $278 million short of the $8.23 billion reported at the end of March.

Operational Profits and Treasury Holdings

In their latest report, Tether disclosed a net operating profit of $1.5 billion in the third quarter, totaling $4.5 billion for the first nine months of the year. This profitability primarily stems from investments in Treasury bills and reverse repos. However, a discrepancy exists between Tether's reported figures and BDO's assessment of $1.66 billion for the nine-month results.

Tether listed its direct and indirect Treasury bill holdings at $132.4 billion, which aligns with BDO's reporting of $122.84 billion in Treasury bills plus an additional $9.52 billion from overnight reverse repos—this latter holding has roughly halved over the quarter.

Furthermore, Tether's equity at the end of 2025 was restated at $6.81 billion, corroborating findings from KPMG-audited accounts published earlier in August.

CEO Paolo Ardoino emphasized that the recent profits alongside increased reserves provide a robust foundation for ensuring the reliability of USDT, particularly during periods of market stress. It's important to note that BDO’s audit covers only the balances as of September 30.