Tether Reports $1.04B Q1 2026 Net Profit, Reserve Buffer Climbs to Record $8.23B

Tether said it generated $1.04 billion in net profit in the first quarter of 2026 and raised its reserve buffer to an all-time high of $8.23 billion, according to a quarterly attestation from accounting firm BDO. The attestation puts USD₮ liabilities at about $183 billion, backed by $191.77 billion in assets, leaving more than $8.2 billion in excess capital. U.S. Treasury exposure remains the core of the reserve mix. As of March 31, Tether reported roughly $141 billion in direct and indirect holdings of U.S. Treasury bills, largely in short-duration government paper. The company said that level of exposure would make it the world's 17th-largest holder of U.S. government debt. With Treasury bills yielding above 4%, the firm said the interest income generated by that position was a key driver of Q1 profitability. Tether characterized the $8.23 billion buffer as largely accumulated yield rather than new external capital, leaving earnings sensitive to any sustained decline in short-term rates. Outside Treasuries, Tether reported around $20 billion in physical gold and $7 billion in Bitcoin (BTC), together representing about 14% of reserves. The company described the allocation as a hedge against macro stress, though both assets can fluctuate materially and move the surplus figure; Bitcoin has posted quarterly drawdowns above 30% in prior cycles. Token supply stayed near $183 billion during the quarter. Tether said USD₮ in circulation increased by more than 5 billion units into early Q2, alongside the launch of its self-custody product, Tether Wallet. Tether also said its long-awaited full audit has "formally commenced" this quarter, marking the first time it has referenced the audit process within an attestation. Until completed, the $8.23 billion buffer remains an attested, not audited, figure.