Tether reported $4.5 billion in net operating profit for the first nine months of 2026, while its reserve buffer stood at $7.95 billion at the end of September—below the $8.37 billion value of its bitcoin holdings. The figures in the company’s third-quarter attestation highlight how the buffer supporting USDT reserves can be affected by changes in crypto and other asset prices, including bitcoin and gold.
Operating profit and reserve buffer measure different things
Tether uses net operating profit as a measure of its business performance. The earnings mainly come from holdings of US Treasury bills and short-term reverse repurchase agreements backed by Treasuries. At the end of the reporting period, those holdings totaled $132.4 billion. Net operating profit excludes changes in the market value of gold and bitcoin.
The attestation prepared by accounting firm BDO takes asset valuation changes into account. On that basis, Tether’s reserve buffer grew by $1.66 billion in the first nine months, rather than by the $4.5 billion recorded as net operating profit. The measures are not directly comparable: one reflects operating earnings, while the other also moves with the value of reserve assets.
The buffer reached $7.95 billion at the end of the third quarter, nearly double the $4.11 billion reported at the end of the second quarter. Tether’s third-quarter announcement did not specify what drove the roughly $3.8 billion increase. In the previous quarter, declines in gold and bitcoin had cut the buffer in half, even as the company recorded $1.5 billion in net operating profit.
Gold and bitcoin values affect the buffer
The attestation listed combined gold and bitcoin holdings of $27.45 billion. Based on the reported figures, a 29% decline in the two assets’ combined value would be enough to offset the $7.95 billion reserve buffer. This is a calculation based on the disclosed holdings and buffer, not a forecast of asset prices.
Gold, bitcoin, secured loans and other investments totaled $47.7 billion, or 25% of Tether’s reserves. The reserve mix therefore includes assets whose values are more exposed to market movements, alongside Treasuries and other holdings. For USDT holders, operating profit and the reserve buffer are distinct measures; reserve coverage also depends on the buffer’s size and changes in the value of the assets backing it.