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Tether earned $4.5 billion in the first nine months of 2026, according to its third-quarter attestation released on Friday, October 30, 2026. The report reveals that the company’s Bitcoin holdings, valued at $8.37 billion, now exceed the $7.95 billion safety buffer protecting USDT holders.
Buffer Growth and Profit Metrics
The USDT safety buffer nearly doubled from $4.11 billion at the end of Q2 2026 to $7.95 billion in Q3 2026. This increase of $3.8 billion occurred despite the fact that gold and Bitcoin prices cut the buffer in half during the previous quarter. Tether’s net operating profit for Q3 2026 was approximately $1.5 billion, following a $1.5 billion profit in Q2 2026.
There is a discrepancy between Tether’s reported earnings and the growth in its safety buffer. Net operating profit, Tether’s internal metric, is derived primarily from interest earned on $132.4 billion in US Treasury bills and reverse repos. This metric excludes price fluctuations in gold and Bitcoin. However, the attestation prepared by accounting firm BDO includes these price moves. On this basis, the buffer grew by only $1.66 billion over the nine-month period, rather than the full $4.5 billion in earnings.
Reserve Composition and Risk Factors
Gold and Bitcoin together account for $27.45 billion of Tether’s reserves. According to calculations from the attested figures, a combined 29% decline in the value of these two assets would eliminate the entire safety buffer. Gold, Bitcoin, secured loans, and other investments now constitute $47.7 billion, or 25% of total reserves. This share was 24% in November 2025.
S&P Global Ratings downgraded USDT to its lowest stability score, “weak,” in November 2025. The agency cited Bitcoin exposure exceeding the buffer and undisclosed custodians and counterparties as reasons for the downgrade. The remaining 73% of reserves, valued at $139.6 billion, consists of Treasuries, reverse repos, and cash. BDO verified these totals but noted that the valuations assume normal trading conditions rather than market stress.
Paolo Ardoino, CEO of Tether, stated in the release: “Our responsibility is to make sure USD₮ remains dependable when people need it most, including when markets and financial systems come under pressure.” The safety buffer has fluctuated between a high of $8.23 billion and a low of $4.11 billion within the past year, while USDT in circulation has remained near $183.5 billion. Tether has completed its first clean audit by KPMG, but the stability of its largest stablecoin now depends significantly on the prices of gold and Bitcoin.
Frequently Asked Questions
Why did Tether’s safety buffer grow by only $1.66 billion despite $4.5 billion in earnings?
Tether’s net operating profit excludes price moves on gold and Bitcoin, while the BDO attestation includes them. The $1.66 billion figure reflects the buffer’s growth on the attestation basis over nine months.
What percentage drop in gold and Bitcoin would wipe out the USDT safety buffer?
A combined 29% fall in the value of gold and Bitcoin would wipe out the entire $7.95 billion safety buffer, based on calculations from the attested figures.
