Tether reported a $1.5 billion net profit in the second quarter, the company announced this week. The stablecoin issuer's market capitalization grew by $446 million during the quarter, even as the broader crypto market slowed. Tether also increased its gold holdings by 14 tons of physical gold and now holds 98,932 Bitcoin as part of its reserves.
Bitcoin holdings cross 98,000
Tether's Bitcoin stash now stands at 98,932 BTC. The company has been steadily accumulating the cryptocurrency as part of its reserve diversification strategy. The holding represents a significant chunk of its overall reserves, though Tether does not break out the exact percentage. The addition comes as Bitcoin's price has been volatile, but Tether appears to be holding for the long term.
Gold pile grows by 14 tons
Tether added 14 tons of physical gold to its reserves during the quarter. The move continues the company's push into precious metals as a hedge against market turbulence. Tether didn't disclose its total gold holdings, but the 14-ton addition is a notable increase. The company has been buying gold for several quarters now, signaling a shift toward tangible assets.
Treasury bills remain the backbone
The majority of USDT's collateral is still in U.S. Treasury bills. That's been a key part of Tether's strategy to move away from commercial paper and other riskier assets. The company has been transparent about its reserve composition in recent quarterly reports, and the latest numbers show Treasury bills continue to dominate. It's a conservative approach that seems to be paying off, given the $1.5 billion profit.
Tether's next quarterly report is expected in three months. For now, the company's reserves include 98,932 Bitcoin and 14 tons of gold, with Treasury bills making up the bulk of the collateral.
