Tether Posts $1 Billion Q1 2026 Profit as Excess Reserves Hit Record $8.2 Billion

Tether, the issuer of the USDT stablecoin, has invested up to 15% of its realized net operating profit each quarter in Bitcoin since 2023, seeking to diversify its reserves and build a long-term position. As the company behind the world’s largest stablecoin, Tether draws close market scrutiny over the scale of its purchases and shifts in asset allocation.

In the first quarter of 2026, Tether withdrew 951 Bitcoin worth about $70 million from crypto exchange Bitfinex. The purchase lifted its total holdings above 97,000 BTC, valued at about $7.2 billion, with unrealized gains of $2.17 billion. The position ranks as the world’s fifth-largest Bitcoin wallet.

Tether issues USDT, one of the world’s leading U.S. dollar stablecoins, and derives its profits and market influence from its vast reserve assets and demand for cryptocurrency trading. The fundraising seeks a $500 billion valuation, which would exceed the valuations of most U.S. banks if completed and serve as a key gauge of investor confidence in the stablecoin industry.

As of July 20, 2026, Tether had reportedly set a two-week deadline for the deal at a $500 billion valuation, asking prospective investors to make commitments. The company could delay the fundraising if demand falls short during that period. Reports have not disclosed the target amount to be raised, the date on which the deadline began or the names of the investment firms involved.