The CEO of Tether, Paolo Ardoino expects to close this year with a remarkable net profit for the company with the number potentially reaching over $10 billion.
This record breaking milestone in financials was recorded in a booming cryptocurrency market as a surge in Bitcoin and other digital assets had led to a higher demand for Tether’s USDT stablecoin.
The company has witnessed its market capitalization for USDT balloon by nearly $50 billion this year, bringing the total value to over $140 billion. Much of Tether’s profits stem from strategic investments of its reserves, including allocations into U.S. Treasuries, gold, and other securities.
Ardoino revealed that over half of the company’s profits, this year have been reinvested, marking a significant growth strategy.
Tether recently agreed to invest $775 million in the video-sharing platform Rumble, including $250 million in cash and further backing for a share tender offer.
Ardoino outlined plans for the coming year, 2024, to continue growing Tether’s investment portfolio, particularly in emerging technologies such as artificial intelligence.
The company will be launching its in-house AI platform in the first quarter of next year, enabling users to have direct interaction with AI right from their smartphones.
Tether is also looking to increase its investments in Bitcoin mining and biotech, among others, and is keeping close tabs on the regulatory change that’s happening in crypto in the U.S.
With expectations of a more favorable regulatory environment under President-elect Donald Trump, Tether plans to strengthen its financial ties with key partners such as Cantor Fitzgerald, which is led by Trump’s nominee for Commerce Secretary, Howard Lutnick. There are reportedly discussions for a deeper collaboration, including launching a potential lending program.
Also Read: Tether to Launch AI Platform in Q1 going into 2025
