Woofun AI reports that Tether generated $1.5 billion in net operating profit for the second quarter of 2026, a performance attributed to yields from its U.S. Treasury and repurchase agreement portfolio rather than stablecoin issuance growth.

As of June 30, the issuer of USDT held $187.75 billion in assets against $183.64 billion in liabilities, according to the BDO attestation released Friday. This balance sheet structure resulted in $4.11 billion in excess reserves, a figure that represents a sharp contraction from the $8.23 billion recorded three months earlier. The reduction in buffer capital occurred while the company maintained its core liability coverage through high-yield fixed-income instruments.

Per Woofun AI, the firm expanded its physical gold holdings by 14 tons, raising the total from 132.2 tons to roughly 146.2 metric tons during the quarter. Despite this accumulation, the valuation of these assets fell to $18.84 billion from $19.84 billion because the price of gold dropped about 15% to just over $4,000 per ounce. Simultaneously, the company lifted bitcoin holdings by roughly 1,796 coins to reach 98,933 BTC.

However, the value of those holdings fell to $5.80 billion from $6.62 billion as the bitcoin price used in the reports declined to $58,600 from $68,200 during the period.

The divergence between reserve asset valuation and profit generation highlights the impact of commodity volatility on balance sheet metrics. Tether’s USDT issuance increased by about $446 million to $184.6 billion during the quarter, indicating steady demand for the stablecoin despite the erosion in reserve asset prices.