While Tether expects to make more than $10 billion in net profit by the end of 2024, it has attracted attention again with its investments.
Paolo Ardoino, CEO of Tether Holdings Ltd., the world’s largest stablecoin issuer, revealed in an interview that the company is expected to make more than $10 billion in net profit by the end of the year, according to Bloomberg.
With Bitcoin and many other cryptocurrencies reaching historic highs, demand for Tether’s USDT stablecoin, which is pegged to the dollar, has increased dramatically. The company has previously stated that it uses half of its earnings to buy Bitcoin and that these purchases will continue. This suggests that it is possible for Tether to buy $5 billion worth of Bitcoin by 2025.
Tether invests in many areas, especially Bitcoin. The company makes a large portion of its profits by investing the reserves it holds to back its stablecoins in U.S. Treasury bonds, Bitcoin, gold and other securities.
Tether also continues to invest in Bitcoin mining, biotechnology, and other sectors. Ardoino noted that the company continues its investments in the US, where crypto regulations are expected to become more favorable under the administration of President-elect Donald Trump.
Ardoino said more than half of Tether’s net profits this year have been invested. Last Friday, the company agreed to invest $775 million in video-sharing network Rumble. $250 million of that investment will be in cash, and Tether will also back Rumble’s offer to buy 70 million shares at $7.50 per share.
“We plan to invest at least half of our earnings next year,” Ardoino said, adding that these investments will include areas such as artificial intelligence (AI). The company aims to launch its own artificial intelligence platform in the first quarter of the year and allow users to interact with artificial intelligence via mobile phones.