What to know:
- Tether achieves impressive net profit for Q1 2026 of $1.04 billion, backed by excess reserves of $8.23 billion.
- With $141 billion U.S. Treasuries held, the annualized income stands at almost $4 billion from steady interest payments.
- The gold reserve of the firm has grown to 132 tonnes, worth approximately $19.8 billion.
Tether reported strong financial performance in its Q1 2026 attestation released on May 1, highlighting continued growth in reserves and profitability. The attestation, prepared by BDO, confirmed a net profit of approximately $1.04 billion alongside an excess reserve buffer reaching $8.23 billion, reinforcing the firm’s financial stability.
The company attributed its quarterly profit largely to its $141 billion exposure to U.S. Treasury holdings. With Treasury bill yields remaining above 4%, this allocation is estimated to generate nearly $4 billion in annualized interest income. CEO Paolo Ardoino emphasized operational resilience, stating the system must function consistently under all market conditions.
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Tether Expands Gold Reserves to 132 Tonnes
Tether’s reliance on Treasury instruments reflects a strategy centered on predictable income generation and liquidity management. In particular, according to information revealed in a post by DustyBC Crypto, the company added over six tonnes of gold in Q1 2026, bringing total holdings to 132 tonnes with a current valuation of $19.8 billion.
By increasing its exposure to commodities such as gold, Tether is aiming to diversify the assets held in its reserves. This step reflects a strategic response to rising crypto market demands regarding reserve structure, liquidity control, and related requirements.
Gold Accumulation Signals Strategic Reserve Shift
The reported gold purchases position Tether among notable global buyers, with activity levels approaching those of sovereign entities. In 2025, token’s activity approaches that of many sovereign states. Specifically, Tether has been a larger buyer of gold than most central banks in 2025. For 2026, there were not many countries that outpaced Tether in its gold buying spree.
Meanwhile, regulatory developments continue to shape Tether’s operational outlook. The GENIUS Act, signed into law in July 2025, requires to prepare for the new reserve verification rules. While the reserves of the firm meet liquidity requirements, it needs to perform a comprehensive audit before the January 2027 deadline.
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