Tether Holdings Ltd. is poised to close 2024 with an impressive net profit of over $10 billion, according to its CEO, Paolo Ardoino. This remarkable growth comes amidst a resurgence in cryptocurrency markets, with Bitcoin and other digital assets hitting all-time highs, Bloomberg reports.
The Surge in Tether’s USDT
The demand for Tether’s flagship stablecoin, USDT, which is pegged to the US dollar, has soared this year. The token added nearly $50 billion to its market capitalization, which now exceeds $140 billion, according to CoinMarketCap.
Much of Tether’s earnings are generated from strategic investments of its reserves backing USDT in US Treasuries, gold, and other securities.
Strategic Investments in Rumble and AI
Tether’s profits have fueled its ambitious investment plans. The company announced a $775 million investment in Rumble, a video-sharing platform competing with YouTube.
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Ardoino emphasized Tether’s focus on reinvesting profits to diversify its portfolio. “Next year, we plan to deploy at least half of the profits in investments,” he said.
Tether’s future ventures will focus on emerging sectors such as artificial intelligence. In the first quarter of 2025, the company plans to launch its own AI platform, allowing users to interact with artificial intelligence through their mobile devices.
Expanding into New Sectors
Beyond stablecoin operations, Tether has been diversifying into Bitcoin mining, biotech, and other innovative industries. Its growing portfolio reflects a broader ambition to lead not only in cryptocurrency but also in cutting-edge technology and digital services.
Tether’s expansion plans are bolstered by expectations of a friendlier regulatory environment under President-elect Donald Trump. Trump’s nominee for Commerce Secretary, Howard Lutnick, leads Cantor Fitzgerald, a financial services firm that holds a stake in Tether and manages the stablecoin issuer’s reserves. Discussions are reportedly underway to deepen financial collaboration, with plans for a potential lending program.
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Ardoino highlighted the importance of these relationships, particularly as Tether positions itself as a leader in the evolving crypto landscape. “Our investment is just at the beginning,” he said, underscoring Tether’s commitment to shaping the future of both blockchain and traditional finance.
Tether’s unprecedented profits and bold investments mark a transformative year for the company. From securing its dominance in the stablecoin market to entering strategic sectors like AI and video-sharing, Tether is not only solidifying its position in the crypto ecosystem but also expanding its influence across industries.
As the company prepares for 2025, its ability to navigate regulatory changes and seize new opportunities will be pivotal in defining its next chapter.
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