Tether reported $1.5 billion in net operating profit for the second quarter, but analysis of its reserve materials implies a $4.21 billion financial hit. This decline reduced the equity cushion between assets and liabilities from $8.23 billion to $4.11 billion in just three months, bringing it from 4.49% to 2.24% of total liabilities. Gold and Bitcoin markdowns account for roughly $3.73 billion of the implied loss, while total assets fell from $191.8 billion to $187.7 billion. Tether has not reconciled the gap between its stated operating profit and the implied financial performance, leaving part of the figures unexplained.
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