Tether solvency fears are ‘misplaced’ as company sits on large surplus: CoinShares

The Tether FUD machine is back online — but this time, the data isn't playing along. Arthur Hayes just dropped another doom bomb, warning that Tether could implode if its Bitcoin and gold reserves tank. But CoinShares' head of research James Butterfill just hit back HARD in a Dec. 5 market update, calling those fears 'misplaced.' Why? Because Tether's sitting on a massive $6.8 BILLION surplus. Let's break it down.

Butterfill pointed straight to Tether's latest attestation: $181 billion in reserves vs. $174.45 billion in liabilities. That's a nearly $6.8 billion cushion. He wrote: 'Although stablecoin risks should never be dismissed outright, the current data do not indicate systemic vulnerability.' Translation: chill out, the numbers are solid.

And let's not forget — Tether is printing money. $10 billion profit in the first three quarters of this year alone. That's an insane per-employee figure that makes most tech giants look like side hustles.

So where's the panic coming from? BitMEX founder Arthur Hayes lit the fuse last week. He claimed Tether is 'in the early innings of running a massive interest-rate trade' and warned that a 30% drop in its Bitcoin and gold holdings would 'wipe out their equity' and leave USDT technically 'insolvent.'

But Hayes isn't the only one throwing shade. S&P Global just downgraded USDT's ability to defend its dollar peg, citing exposure to 'higher-risk' assets like gold, loans, and Bitcoin. Tether CEO Paolo Ardoino fired back, calling it 'Tether FUD' and pointing to their Q3 attestation as proof.

The bottom line: USDT remains the undisputed king of stablecoins — $185.5 billion in circulation, commanding nearly 59% market share according to CoinMarketCap. The FUD might be loud, but the balance sheet is louder.