Tether reported an increase of $850 million in its excess reserves in the second quarter, reaching $3.3 billion.
The second quarter verification of stablecoin issuer Tether (USDT) revealed an increase of more than $170 million in Bitcoin (BTC) reserves, raising the total from $1.5 billion to $1.67 billion.
The increase aligns with the company’s aim to strengthen and diversify its reserves through BTC purchases. In May, Tether had announced plans to allocate 15% of its net realized operating profit for this leading digital asset.
Contrarily, the company experienced a decline in precious metals reserves, especially in gold, which decreased by approximately $120 million from $3.39 billion in the first quarter to $3.27 billion.
Tether’s Excess Reserves Rose to $3.3 Billion
According to the quarter-end verification, Tether reported $3.3 billion in excess reserves, an increase of $850 million from the $2.44 billion recorded in the first quarter.
The firm noted that the excess reserves are undistributed profits and are held together with the 100% reserves for issued USDT tokens.
Tether added that it generated more than $1 billion in operational profit between April and June 2023, which represents a 30% increase over the quarter.
This profit underscores USDT’s dominance in the stablecoin market. The liquidity pool of the asset is on the verge of reaching an unprecedented record peak, nearing the colossal sum of $84 billion.
Tether Reserves Have High Liquidity
Tether also noted that its reserves are highly liquid, as 85% of all its investments are in cash and cash equivalents.
The company added that its direct and indirect exposure to US Treasury Bonds and Treasury notes make up $72.5 billion of its reserves.
In addition to holding $850 million of its quarter-end profits in excess reserves, Tether used the remainder for a $115 million share buyback and investments in energy-related projects. However, the company noted it did not include its energy investments in the consolidated reserve report.
Overall, the stablecoin issuer had a total debt of $83.17 billion, which represented the entirety of its issued tokens. On the other hand, the total asset value was at least at the level of $86.49 billion.
