Tether Earns $4.5 B in Q3 2026, but Bitcoin Holdings Exceed Its $7.95 B Reserve Cushion

Tether’s third‑quarter 2026 attestation shows the stablecoin earned $4.5 billion in gross profit, yet the $7.95 billion cushion that protects USDT holders is now smaller than the $8.37 billion of Bitcoin held in its reserves. The cushion, which had risen from $4.11 billion at the end of Q2, grew by only $1.66 billion when accounting for market‑value changes in gold and Bitcoin. The reserve composition now includes $27.45 billion in gold and Bitcoin, $139.6 billion in Treasuries, reverse repos and cash, and other investments totaling $47.7 billion (25% of reserves). A 29% drop in gold and Bitcoin prices could wipe out the entire cushion, according to BeInCrypto’s calculations. S&P Global Ratings downgraded USDT to a “weak” stability score in November 2025, citing high Bitcoin exposure and undisclosed custodians. Paolo Ardoino, Tether’s CEO, emphasized the company’s commitment to maintaining USD₮’s reliability even under market stress.