Tether has diversified its reserve strategy by adding gold and bitcoin, anticipating a cycle of interest rate cuts. The stablecoin issuer now holds over 100 tons of gold and 90,000 BTC, which constitute approximately 12-13% of its reserves. This strategic shift aims to mitigate potential income losses from declining yields on U.S. Treasury bonds, previously a major profit source for Tether. However, this move has sparked concerns among rating agencies. S&P Global has downgraded Tether's ability to maintain the USDT-USD peg, citing increased exposure to high-risk assets as a potential vulnerability. The adjustment reflects Tether's response to changing economic conditions and its efforts to sustain profitability.