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Tag: Positive

  • Trump Bitcoin Holdings Surpass 8,000 BTC After Record Mining Quarter

    Trump Bitcoin Holdings Surpass 8,000 BTC After Record Mining Quarter

    American Bitcoin Boosts Holdings to Over 8,000 BTC, Reports Record Production

    American Bitcoin, a company with backing from the Trump family, announced Monday that it expanded its Bitcoin reserve to over 8,000 BTC, valued at approximately $512 million, during the second quarter. This expansion followed a record production of 932 Bitcoin, underscoring the company’s strategy of combining large-scale mining operations with long-term asset accumulation.

    According to the company, American Bitcoin concluded June with roughly 8,002 BTC in its reserves, marking a 14% increase from approximately 7,021 BTC at the end of March. This growth was driven by the company achieving its highest quarterly Bitcoin production since its launch in September.

    “Our view of the world is simple: Bitcoin is a growing capital asset, and we believe its long-term compounding will outperform our cost of capital,” stated CEO Mike Ho. “Despite Bitcoin headwinds in Q2, we stayed focused on what we can control: we delivered our highest quarterly production on record, grew our strategic reserve to over 8,000 Bitcoin, and strengthened the foundation of our business.”

    Mining revenue for the quarter rose to $67 million, up from $62.1 million in the first quarter. The company reported that its cost to mine a Bitcoin remained relatively stable at about $36,500, despite an increase in energy costs. American Bitcoin indicated that its gross margin stayed close to 50%, even as Bitcoin’s average price saw a decline of approximately 12% compared to the previous quarter.

    The company also reported a net loss of $57.2 million, an improvement from the $81.8 million loss recorded in the first quarter.

    Co-founder and Chief Strategy Officer Eric Trump highlighted the quarter as evidence of the company’s rapid growth and its long-term Bitcoin strategy. “A little over a year ago, American Bitcoin was just an idea. Today, we hold more than 8,000 Bitcoin, operate one of the world’s largest Bitcoin mining platforms, and just delivered our highest quarterly production on record,” Trump said in a statement. “Our conviction in Bitcoin remains absolute, and our goal is simple: to deliver relentless growth, quarter after quarter, and build the preeminent American Bitcoin powerhouse for the long haul.”

    However, this announcement comes after a period of significant volatility for American Bitcoin. In March, the company disclosed that it had surpassed 7,000 BTC in holdings less than seven months after its Nasdaq debut. This news coincided with its shares falling to their lowest price since going public, trading approximately 94% below their post-initial public offering peak. In May, American Bitcoin reported an $82 million net loss for the first quarter, despite increasing its treasury to over 7,300 BTC and expanding its mining fleet to nearly 90,000 machines. The company argued at the time that accounting treatments tied to Bitcoin’s price were masking an otherwise profitable quarter.

    In July, the company executed a 1-for-15 reverse stock split to comply with Nasdaq’s minimum bid price requirement, following a period where its shares hit another record low amid a broader downturn in cryptocurrency-related stocks.

    The latest report also coincides with the departure of American Bitcoin President and interim CFO Matt Prusak. Prusak announced Monday on X that he is leaving to join AI and energy infrastructure developer Giga Energy as chief business officer and interim CFO. In a separate blog post, Prusak noted that the industry’s primary constraint has shifted from Bitcoin mining itself to the power infrastructure required to support both mining and AI data centers. “Giga has more opportunity than any company can pursue at once,” he wrote. “Part of my role is to help identify the highest-leverage opportunities, shape where we focus, and build the machinery each priority requires.”

    Despite these challenges, CEO Mike Ho expressed optimism regarding the company’s future. “American Bitcoin is, at its core, an operating business—we generate Bitcoin through scaled infrastructure rather than simply holding it on a balance sheet,” he stated. “Looking ahead, we are focused on deepening that infrastructure advantage, strengthening our balance sheet position, and compounding Bitcoin per share so that the work we do today translates into durable value for our shareholders across market cycles.”

  • XRP Taps Institutional DeFi Lending via FXRP on Ethereum

    XRP Taps Institutional DeFi Lending via FXRP on Ethereum

    XRP Enters Institutional DeFi Lending Via FXRP on Ethereum

    Flare has announced a significant development for XRP within the decentralized finance (DeFi) ecosystem, enabling its FXRP token to be utilized as collateral within Sentora’s RLUSD vault on the Morpho protocol. This integration allows XRP holders to access lending markets on the Ethereum blockchain without the need to liquidate their existing XRP holdings.

    The move follows Sentora’s official approval of FXRP for its institutionally managed RLUSD vault, which was announced on August 3, 2026. The vault currently holds approximately $280 million in RLUSD and has now established a dedicated FXRP/RLUSD market on Morpho Blue.

    According to a press release, this marks the first instance of an XRP derivative being accepted as collateral within an institutional lending vault on the Ethereum mainnet. Users can generate FXRP through Flare’s FAssets system, subsequently transfer it to Ethereum via the Stargate bridge, and then borrow RLUSD while retaining their exposure to XRP.

    The newly launched lending market is accessible to all users without requiring prior whitelisting. A supply cap has been implemented at the outset, with expectations that this limit will be adjusted as liquidity within the market expands.

    Flare Co-founder and CEO Hugo Philion commented on the milestone, stating that limited infrastructure had historically constrained XRP’s utility in decentralized finance. He emphasized that this approval signifies a shift in perception, with institutional risk managers now recognizing FXRP as legitimate collateral on Ethereum, rather than merely another bridged asset.

    Sentora Co-founder and Chief Technology and Product Officer Jesus Rodriguez echoed this sentiment, highlighting that the integration effectively brings XRP into on-chain credit markets. He further noted that this development broadens the practical applications of XRP across decentralized lending platforms.

    Prior to approving FXRP, Sentora conducted a comprehensive review encompassing market behavior, price oracles, liquidity, and liquidation mechanisms. The company has indicated that FXRP will continue to be subject to the same ongoing monitoring processes applied to all other approved collateral assets.

    The Morpho Blue protocol’s architecture isolates each lending market, thereby confining potential risks to the specific FXRP/RLUSD pool. This design also grants each market its own independent oracle system and liquidation parameters.

    Under this framework, borrowers will incur interest charges based on market utilization and must maintain sufficient collateral to prevent liquidation. Flare is actively developing Smart Accounts, which are intended to facilitate the entire process directly from XRP Ledger wallets. The company is also pursuing the development of direct FXRP transfers from the XRP Ledger to the Ethereum network.

  • Ripple Invests in Zilo and Lucuido to Expand Digital Capital Markets Infrastructure

    Ripple Invests in Zilo and Lucuido to Expand Digital Capital Markets Infrastructure

    Ripple announced on August 3rd its strategic investments in Zilo and Lucuido, two companies focused on developing infrastructure for tokenized funds and institutional asset trading. This move is part of Ripple’s broader strategy to expand its digital capital markets offerings.

    Zilo specializes in transfer agency and fund administration technology for tokenized funds, while Lucuido operates an FCA-regulated platform designed for the issuance, distribution, trading, and collateralization of digital assets. The integration of these capabilities into Ripple’s XRP Ledger infrastructure aims to enable institutions to issue, hold, move, and utilize tokenized assets as collateral more efficiently.

    Nigel Khakoo, SVP, Trading and Markets at Ripple, stated that Zilo and Lucuido provide essential capabilities for scaling the shift towards tokenized assets, including regulated digital transfer agency infrastructure and liquidity for issuance and collateral mobility. He added that these investments are just the beginning and represent a significant opportunity to bring efficiencies to the investment sector over the next decade.

    These acquisitions are intended to allow asset managers to leverage these tools at scale. Ripple plans to integrate Zilo’s transfer agency and fund administration technology and Lucuido’s platform for digital asset issuance and trading into its XRP Ledger infrastructure. This integration will facilitate institutions in issuing, holding, moving, and using tokenized assets as collateral.

    RLUSD is positioned to serve as the regulated cash component for delivery-versus-payment transactions on the XRP Ledger, enabling the asset and payment sides of a trade to settle together. This development builds on Ripple’s existing work with institutional partners such as Aviva Investors, Franklin Templeton, and DBS on tokenized fund and collateral projects.

    In recent months, Ripple has also launched Ripple Mint and made an investment in the compliance provider Notabene, further strengthening its institutional offerings in digital capital markets. These initiatives collectively aim to enhance the infrastructure available to institutions utilizing RLUSD.

    The size of the investments in Zilo and Lucuido was not disclosed.

    Why This Matters

    The materials describe a narrow update: Ripple has invested in Zilo and Lucuido, companies focused on infrastructure for tokenized funds and institutional asset trading. The size of the investments in Zilo and Lucuido was not disclosed.

    Broader Context

    Source materials place the factual news in this context: Ripple has expanded its digital capital markets strategy.

  • PayPal Reports Q2 Growth, Establishes Dedicated Crypto Division Amid Restructuring

    PayPal Reports Q2 Growth, Establishes Dedicated Crypto Division Amid Restructuring

    PayPal reported its second-quarter financial results on July 28, revealing a 10% year-over-year increase in total payment volume to $486.4 billion and a 5% rise in revenue to $8.68 billion. The company also reported a significant corporate reorganization, establishing a dedicated division for cryptocurrency operations named Payment Services & Crypto, and identified stablecoins as a key area for future expansion.

    Financial Performance and Guidance

    In the second quarter, PayPal’s non-GAAP earnings per share reached $1.38, exceeding analyst estimates. Transaction margin dollars increased by 1% to $3.9 billion, and adjusted free cash flow was reported at $1.83 billion. The company raised its full-year transaction margin guidance to approximately $15.6 billion and adjusted the lower end of its full-year earnings per share range to roughly $5.38.

    Net losses on strategic investments and crypto assets held for investment amounted to $81 million in the quarter, compared to $74 million in the first quarter. PayPal anticipates that its full-year 2025 GAAP earnings will see a positive impact of about $0.14 per share from this investment portfolio.

    Crypto Division and Stablecoin Strategy

    The newly formed Payment Services & Crypto division will operate alongside other key units such as Checkout Solutions & PayPal and Consumer Financial Services & Venmo. This structural change underscores PayPal’s strategic focus on integrating and developing its cryptocurrency-related services.

    PayPal’s stablecoin, PYUSD, has seen its supply decrease to approximately $2.8 billion in mid-July, down from over $4 billion in March. Despite this reduction, the stablecoin launched natively on the Polygon network on July 9 and is reportedly available in 70 markets. YouTube began utilizing PYUSD for payments to US creators in December.

    Market data indicates that PYUSD and Societe Generale’s EURCV hold a small share of the fiat-backed stablecoin market. Tether (USDT) and USD Coin (USDC) collectively account for 93.5% of the total fiat-backed stablecoin supply, according to CryptoPotato’s reporting on CoinGecko research.

    Cost Savings and Future Outlook

    As part of a broader financial restructuring effort, CEO Enrique Lores, who assumed the role on March 1, is targeting at least $1.5 billion in gross run-rate savings over the next two to three years. Approximately $400 million of these savings are expected to be realized by the end of the current year. The savings plan, extending to 2029, is driven by three primary factors: simplifying the company’s structure, optimizing operations and portfolios, and accelerating the adoption of artificial intelligence. PayPal projects that AI adoption will contribute around 40% of the total projected savings.

    Why This Matters

    The materials describe a narrow update: PayPal announced its second-quarter financial results, reporting a 10% year-over-year increase in total payment volume to $486. The specific reasons for the decrease in PYUSD supply from March to mid-July.

    Broader Context

    Source materials place the factual news in this context: PayPal has reported $486.4 billion in total payment volume for the second quarter on July 28, up 10% year over year.

  • Cardano Surges 9% Amidst Stagnant Crypto Market

    Cardano Surges 9% Amidst Stagnant Crypto Market

    Cardano’s ADA Surges Amidst Stagnant Crypto Market

    In a market environment where most altcoin gains are quickly stifled, Cardano’s ADA has defied the trend, emerging as a significant performer over the past weekend. While broader market movements have been notably subdued, particularly on Saturdays and Sundays, ADA has experienced a substantial uptick.

    The current market inertia is evident, with even geopolitical developments, such as conflicting statements from former President Trump and Iran regarding the Strait of Hormuz, failing to stir significant price action in Bitcoin and most other cryptocurrencies.

    However, Cardano’s ADA has distinguished itself, registering a gain of over 9% and surpassing the $0.19 mark for the first time in nearly a month. This resurgence appears to be driven by a specific market dynamic.

    Whale Accumulation Fuels ADA’s Rise

    While a general market rally is not the apparent catalyst, the recent behavior of “whales” – large-scale investors with the capacity to influence asset prices – is the most probable reason behind ADA’s impressive performance. These significant market participants have reportedly engaged in a substantial accumulation spree.

    Data from Santiment Intelligence, shared by analyst Ali Martinez, indicates that whales have acquired more than 240 million ADA tokens in less than a week. Their total holdings reached 14.55 billion ADA before a slight retracement. Martinez concluded that this considerable acquisition has been instrumental in fueling ADA’s notable 22% surge over the past five days, contrasting sharply with the stagnation seen across the wider cryptocurrency market.

    Analysts Eyeing Further Upside for ADA

    Further analysis suggests that ADA may be poised for continued gains. Another analyst, known as Gerla on X, has indicated that ADA is “knocking on the door of a major breakout.” Their charts highlight ADA’s current struggle against the $0.19-$0.20 resistance level, a barrier that previously halted its upward momentum last month.

    However, indicators such as bullish Relative Strength Index (RSI) divergence and the completion of an inverse head-and-shoulders pattern suggest that ADA may possess the necessary strength to overcome this resistance. Should it succeed, analysts believe the next target could be around the $0.30 level.

    More optimistically, ZAYK Charts has suggested that a successful breach of the initial resistance could pave the way for a further ascent, potentially reaching $0.50.

  • Japan Simplifies Free XRP Acquisition via Credit Card

    Japan Simplifies Free XRP Acquisition via Credit Card

    Japan has provided XRP holders with a mainstream on-ramp that many Western markets still lack, a development that could prove bullish for Ripple’s price prediction. However, the current market pullback tells only part of the story. Tokyo’s latest move in the cryptocurrency space may hold more significance than today’s price action suggests.

    New Loyalty Program Integrates Crypto Redemption

    Effective July 31, 2026, SBI VC Trade and Orient Corporation will launch a pioneering integration. Holders of Orico credit cards will soon be able to convert Orico Points into Bitcoin (BTC), Ether (ETH), or XRP directly through the VCTRADE platform. The conversion rate is set at 1,200 Orico Points for ¥1,000 worth of cryptocurrency.

    Orico cards typically earn points at a base rate of 1.0%, which increases to 2.0% for new cardholders during their initial six months. This marks the first time cryptocurrency has been introduced as a redemption option within the Orico Points program. The launch signifies SBI’s ongoing efforts to bridge traditional finance with digital assets.

    Normalizing XRP for Millions

    A loyalty program that allows everyday spending to translate into XRP exposure could help normalize the token for millions of Japanese consumers. This initiative has the potential to gradually reduce the disparity between retail interest and actual blockchain activity. While cryptocurrency prices remain volatile, increased accessibility often fosters long-term adoption.

    XRP Price Analysis and Outlook

    XRP is currently trading near $1.05 following a volatile week, with bulls finding themselves confined to a familiar trading range. Recent weakness appears to stem from cautious market sentiment rather than significant XRP-specific selling. Meanwhile, relatively light trading volumes suggest consolidation rather than heavy distribution.

    Support for XRP is currently established between $1.00 and $1.02, levels where buyers have consistently defended the price. A daily close below $1.00 would undermine the current market structure and elevate downside risk. Resistance is observed between $1.08 and $1.10, areas where recent attempts at recovery have faltered.

    Over the next two days, XRP is likely to trade within the $1.00 to $1.10 range, unless a new catalyst shifts market sentiment. A move above $1.10 could pave the way for a test of $1.15. Conversely, a breach of the $1.00 support level might trigger a renewed test of the $0.95 region.

    Longer-term bullish forecasts, projecting prices above $2.00, remain contingent on sustained institutional adoption. Japan’s newfound embrace of crypto initiatives could bolster this case over time. Nevertheless, investors are likely to await tangible user activity before factoring in a lasting breakout.

    At its current price, XRP presents a viable holding for exposure to Japan’s institutional adoption narrative. However, achieving significant upside at its current market capitalization necessitates a multi-month timeline and broader macroeconomic predictions. Traders seeking asymmetric early-stage returns are increasingly focusing on infrastructure projects that have yet to reach their full valuation potential.

    Bitcoin Hyper: A Promising Infrastructure Play

    Bitcoin Hyper ($HYPER) is positioning itself as precisely this type of infrastructure investment. The project is the first Bitcoin Layer 2 solution to integrate the Solana Virtual Machine (SVM), enabling smart contract execution at speeds comparable to Solana but built upon Bitcoin’s security layer. This offers a distinct value proposition compared to existing on-chain solutions.

    The presale has already raised $32.9 million, with the current price at $0.0136839. Staking is already available for participants. The combination of a unique technical selling point, a substantial presale fundraise, and the positive institutional momentum surrounding Bitcoin makes $HYPER a project worth researching.

  • Ripple Expands RLUSD Stablecoin’s Reach in Japan, South Korea, and via OpenUSD Integration

    Ripple Expands RLUSD Stablecoin’s Reach in Japan, South Korea, and via OpenUSD Integration

    Ripple has significantly expanded the reach and utility of its stablecoin, RLUSD, through integration with OpenUSD and securing approval for its use in Japan via SBI VC Trade. These developments mark a strategic push by Ripple to position RLUSD as a regulated stablecoin for global payments and tokenized finance.

    In addition to its expansion in Japan, RLUSD has also seen increased availability in South Korea, launching on the country’s four largest exchanges: Upbit, Bithumb, Korbit, and Coinone. Further bolstering its presence, Binance has extended support for RLUSD with new promotions, enhancing its visibility on the platform.

    To support institutional adoption, Ripple introduced Ripple Mint, a new service designed to assist financial institutions in issuing, managing, and redeeming RLUSD. This initiative complements Ripple’s growing payments ecosystem and reflects a focused effort to serve banks, fintech firms, and enterprise clients entering the cryptocurrency space.

    Further strengthening its commitment to compliance and cross-border payments, Ripple announced a strategic investment in Notabene. This collaboration aims to improve regulated cross-border payments and support the broader adoption of Ripple’s stablecoin.

    In a separate development, the XRP Ledger (XRPL) achieved a significant milestone on July 22, surpassing 1.4 million transactions initiated by AI agents. According to analysts and experts, this highlights the growing experimentation with autonomous applications and machine-to-machine payments, demonstrating that developers are increasingly exploring the XRPL for use cases beyond traditional payments and token transfers.

    As of August 1, RLUSD’s market capitalization reached $1.6 billion, underscoring its growing adoption. The expansion of RLUSD’s reach and its integration into key markets, coupled with new tools for financial institutions, signals Ripple’s continued focus on building robust infrastructure for institutional adoption and global payment solutions.

    Why This Matters

    The materials describe a narrow update: Ripple expanded the integration of its stablecoin RLUSD with OpenUSD and secured approval for its use in Japan through SBI VC Trade. The exact date of the RLUSD launch on South Korean exchanges was stated as ‘earlier this week’ without a specific date.

    Broader Context

    Source materials place the factual news in this context: July was a very eventful month for the company behind XRP, and we will explore some of the major developments, such as growing the stablecoin business, institutional infrastructure, and the XRP Ledger ecosystem, which saw a major milestone that included AI agents.

  • Bitcoin Surges on Trump’s Iran De-escalation

    Bitcoin Surges on Trump’s Iran De-escalation

    Bitcoin Price Recovers as Trump Halts Iran Strikes, Signals Deal

    Bitcoin’s price experienced a notable shift today, driven by evolving developments in the US-Iran conflict, but this time in a positive direction for the cryptocurrency.

    Following a dip to a multi-week low on Tuesday evening, Bitcoin has since recovered approximately $1,500, trading around the $63,500 mark. This rebound appears to be a direct response to a significant de-escalation announced by the US President earlier today.

    President Trump revealed on his social media platform, Truth Social, that while the US military was prepared to continue strikes against Iran, the Middle Eastern nation and other regional powers had requested a pause in military action.

    He further stated that these countries were actively working on a new agreement that would encompass the “immediate, complete and total opening of the Hormuz Strait, and an end to Iran’s nuclear threat.”

    “Based on this request, I have agreed, for the future benefit of the WORLD and, likewise, the survival of a successful and prosperous Iran, to cancel the attack, subject to being able to rapidly make a DEAL,” Trump wrote. “The Country of Israel joins me in this commitment. Get to work, everybody, and get it DONE.”

    As previously noted, Bitcoin reacted swiftly to this news with a significant rebound. The cryptocurrency had fallen to an 18-day low of $62,200 on Tuesday evening amid renewed tensions and planned strikes between the US and Iran. Other factors, including an exodus from Bitcoin ETFs and bearish technical indicators, had also suggested a potential further downturn for the cryptocurrency.

    However, for the moment, geopolitical developments seem to be exerting the most substantial influence on Bitcoin’s price movements. Each instance of de-escalation appears to rekindle optimism in the market. The full impact of these latest developments is anticipated to become clearer on Monday morning, a pattern observed in recent weeks.

  • Pi Network Core Team Reminder on Protocol Upgrade Deadline; PI Token Sees Modest Price Increase

    Pi Network Core Team Reminder on Protocol Upgrade Deadline; PI Token Sees Modest Price Increase

    The Pi Network Core Team has issued a reminder regarding the upcoming migration to protocol version 26, a development that has coincided with a 5% daily increase in the value of the network’s native token, PI. As announced on X (formerly Twitter) on July 31, 2026, the Core Team emphasized the critical deadline of August 11 for Pi Validators to complete the upgrade to remain connected to the network.

    Protocol version 26 is described as one of the most significant updates implemented by the team, aiming to enhance contract safety, state management, interoperability, and cryptographic capabilities. This upgrade is part of a planned series, with protocol version 27 anticipated for late August or September. The August 11 deadline for version 26 suggests that protocol version 25 was successfully deployed, although an official confirmation of this was not immediately available.

    The recent price movement of the PI token, a 5% increase, appears to be an exception to a recent trend where many Pi Network updates have had minimal positive impact on the token’s value. This uptick occurred despite a broader downturn in the cryptocurrency market, marked by Bitcoin’s rejection and subsequent price drop.

    However, the current price action for PI should be viewed within a larger context. The asset is currently priced at $0.086 and has challenged $0.088 in recent hours. Despite the recent gains, PI remains significantly down, over 97% from its all-time high recorded in February of last year. Its market capitalization is well below $1 billion, positioning it as the 68th-largest asset by this metric.

    Several uncertainties surround the Pi Network’s development and token performance. The exact date of protocol version 25’s successful deployment remains unclear. Additionally, the timing of protocol version 27’s introduction, while estimated for late August or September, is not definitively reported. The precise impact of protocol version 26 on the network’s technical capabilities also awaits further observation.

    The Pi Network Core Team’s reminder serves as a crucial call to action for validators, ensuring the continued operation and integrity of the network as it progresses through its upgrade phases. While the PI token has seen a modest increase, its long-term performance indicates substantial recovery is needed to reach previous highs.

    Why This Matters

    The Pi Network Core Team’s reminder about the protocol v26 upgrade deadline and the coinciding 5% PI token price increase is a developing story. The exact date protocol version 25 was successfully deployed remains unclear, and the timing of protocol version 27’s introduction is not definitively reported.

    Broader Context

    This factual news is situated within a broader market context: The cryptocurrency market is back in the red after bitcoin’s rejection on Friday and a subsequent drop to a multi-week low.

  • Tether Posts $1.5B Q2 Profit Amid USDT Growth, Gold Buys

    Tether Posts $1.5B Q2 Profit Amid USDT Growth, Gold Buys

    Tether Reports Strong Second Quarter Profit Amid Market Headwinds

    Tether, the issuer of the USDT stablecoin, announced a net operating profit of $1.5 billion for the second quarter, marking a nearly 50% increase from the first quarter of 2026. The company achieved this growth by expanding USDT in circulation, increasing its reserve surplus to over $4 billion, and bolstering its gold holdings, even as the broader stablecoin market experienced a downturn.

    The financial results were detailed in Tether’s latest quarterly attestation, released Friday. As of June 30, the company reported holding approximately $187.75 billion in assets against roughly $183.64 billion in liabilities, resulting in a reserve surplus of approximately $4.11 billion.

    “Without a doubt, Tether continues to deliver financial inclusion in the developing world like no other company or organization ever has in the history of humanity; we’re all incredibly proud of this achievement,” CEO Paolo Ardoino stated on the social media platform X.

    The report indicated that USDT in circulation reached approximately $184.6 billion by the end of the quarter, an increase of about $446 million from the close of March. Despite a contraction in the overall stablecoin market during the quarter, Tether reported that USDT’s market share grew to exceed 60%.

    Tether stated that the majority of assets backing USDT are invested in short-term U.S. Treasuries, repurchase agreements, and other highly liquid government-backed instruments. These investments were the primary drivers of the quarter’s operating profit, according to the company.

    Furthermore, Tether announced a reduction in its secured lending exposure by approximately $2.38 billion, or 15%, during the quarter.

    The company also expanded its physical gold holdings, adding 14 metric tons to bring its total reserves to over 146 metric tons.

    Ardoino drew a contrast between Tether’s strategic focus and what he characterized as the traditional financial industry’s preoccupation with soaring AI stock valuations. He emphasized Tether’s commitment to investing in technologies that enhance access to financial services and artificial intelligence for underserved populations.

    “These results show that Tether has the liquidity, discipline and scale to remain resilient across market cycles while continuing to serve hundreds of millions of users around the world,” Ardoino added.