CoinShares Pushes Back on Tether Solvency Claims

CoinShares responded to claims by Arthur Hayes and S&P Global that Tether might face solvency issues, saying new data shows these worries are likely exaggerated.

The response comes after criticism from BitMEX co-founder Arthur Hayes. He said Tether is shifting its reserves ahead of the expected Federal Reserve rate cuts and warned that its growing investments in Bitcoin and gold could create financial pressure if the prices of those assets drop.

S&P Global Ratings added to the worries by lowering Tether’s ability to maintain its value from constrained to weak. It stated that Tether is taking on more risk due to volatile assets like Bitcoin and warned that if Bitcoin’s price falls, it could compromise Tether’s financial stability.

According to James Butterfill, Head of Research at CoinShares, the market fears and recent rating changes do not accurately reflect the company’s financial health. He noted that while stablecoin risks shouldn’t be ignored, the current data show no widespread financial problems.

Butterfill added that Tether has around $181 billion in reserves and $174.45 billion in liabilities, giving it a surplus of nearly $6.8 billion. He also pointed out that Tether is one of the most profitable companies in the sector, having made almost $10 billion in profit in the first three quarters of 2025.

Paolo Ardoino Defends Tether’s Strong Financial Position Amid Criticism

Tether CEO Paolo Ardoino responded to the criticism by sharing financial details showing that the company has around $215 billion in total assets, including $7 billion in extra reserves and $23 billion in retained earnings.

Ardoino noted that just 12.6% of Tether’s reserves are Bitcoin and gold, while over 70% are in short-term U.S. Treasuries. He pointed out that S&P overlooked the company’s total equity and didn’t account for the roughly $500 million in monthly profit from Treasury yields.

He described the negative feedback as pressure from competitors and added that the company has plenty of capital with no bad financial assets.