CoinShares Debunks Tether Collapse Fears After Hayes Warning

Core Viewpoint - Tether's financial stability is affirmed despite insolvency concerns raised by BitMEX founder Arthur Hayes, with significant reserves and excess equity reported by Tether executives [1][3][5] Financial Position - Tether has over $181 billion in total reserves against approximately $174.45 billion in liabilities, resulting in a surplus of about $6.78 billion [1] - Tether Group's total assets are approximately $215 billion, with around $7 billion in excess equity and an additional $23 billion in retained earnings [3] - Bitcoin and gold constitute only 12.6% of Tether's total reserves, with over 70% held in short-term U.S. Treasuries [3] Profitability - Tether generated more than $10 billion in profit this year from interest income on reserve assets, highlighting its efficiency as a cash-generating business [4] Market Context - The crypto market is experiencing turbulence due to fluctuations in Japanese government bonds and disappointing U.S. employment data [2] - Hayes's claims suggest Tether is exposed to volatility through its $22.8 billion allocation to gold and Bitcoin, which the company disputes [2][3] Regulatory Implications - S&P Global downgraded USDT's peg-stability rating from 4 to 5, citing increased exposure to high-risk assets and disclosure gaps, which could affect Tether's presence in EU exchanges under MiCA regulations [5]