Tether Holdings, the stablecoin issuer, reported over $1 billion in "operating" profits for Q2, a 30% increase from the previous quarter. However, the company did not disclose net profit and instead only provided operating profit, leading to apparent profit shrinkage. Tether's definition of operating profit remains unclear, and they did not explain the discrepancy between profit and increased excess reserves of $850 million. Tether's profitability stems from its unique business model, but with rising interest rates, its $80+ billion in reserves could generate substantial passive income.