Tether’s $6.8B Surplus: A Tale of Gold and Bitcoin

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Lo! The specter of Tether’s financial stability, long a source of unease, resurfaced this week, as the founder of BitMEX, Arthur Hayes, cast a shadow over the company’s future should the value of its reserves wane. Yet, like a weary traveler in a storm, CoinShares’ head of research, James Butterfill, brushed aside these ominous whispers, declaring that the fears surrounding Tether’s solvency were “misplaced,” as if the very notion were a fleeting shadow in the light of day. 🌫️

In a Dec. 5 market update, Butterfill spoke with the solemnity of a prophet, asserting that Tether’s solvency concerns “look misplaced,” as though the company were a phoenix rising from the ashes of doubt. 🦅

He pointed to Tether’s latest attestation, a document as sacred as the Gospels, which reports $181 billion in reserves against roughly $174.45 billion in liabilities, leaving a surplus of nearly $6.8 billion-a figure that might make even a seasoned investor ponder the whims of fate. 📈💰

“Although stablecoin risks should never be dismissed outright, the current data do not indicate systemic vulnerability,” Butterfill wrote, his words as measured as a chess master’s move. 🎭

Tether remains one of the most profitable companies in the sector, generating $10 billion in the first three quarters of the year-a sum so vast, it might as well be a fantasy of a bygone era. 🧙‍♂️

The latest source of Tether anxiety

While speculation about Tether’s financial health is hardly new-media outlets have probed its reserves and asset backing for years-the latest round of solvency worries appears to stem from Arthur Hayes, a man whose warnings are as frequent as they are dramatic. 🎭

The BitMEX co-founder said last week that Tether was “in the early innings of running a massive interest-rate trade,” arguing that a 30% drop in its Bitcoin (BTC) and gold holdings would “wipe out their equity” and leave its USDt (USDT) stablecoin technically “insolvent.” A fate as dire as a winter without warmth. ❄️

Both assets make up a substantial portion of Tether’s reserves, with the company increasing its gold exposure in recent years-a decision as bold as it is baffling. 🏛️

Tether is facing criticism from more than just Hayes. CEO Paolo Ardoino recently pushed back on S&P Global’s downgrade of USDt’s ability to defend its US dollar peg, dismissing the move as “Tether FUD”-a term that encapsulates the very essence of fear and doubt. Yet, he cited the company’s third-quarter attestation report as his shield, a document that might as well be a holy scripture in the eyes of his followers. 📖

S&P Global downgraded the stablecoin over stability concerns, citing its exposure to “higher-risk” assets such as gold, loans, and Bitcoin-a critique as sharp as a dagger in the dark. 🗡️

Tether’s USDt remains the largest stablecoin in the cryptocurrency market, with $185.5 billion in circulation and a market share of nearly 59%, according to CoinMarketCap-a reign as unyielding as the sun itself. ☀️

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2025-12-06 02:10