Tether, a prominent stablecoin company, is planning to allocate a significant portion of its earnings towards investments in cutting-edge technologies such as artificial intelligence, biotech, and emerging markets. This strategic move was disclosed by CEO Paolo Ardoino.
In an interview with Bloomberg released on June 11, Ardoino revealed that Tether is set to invest a minimum of $1 billion in various deals over the next year through its venture capital division. With a team of 15 experts assessing numerous proposals each month, Tether’s VC arm has already channeled approximately $2 billion into technologies like AI and alternative financial infrastructure in the past two years.
Furthermore, Ardoino mentioned that Tether has already injected over $1 billion into AI ventures, including supporting Northern Data Group with a substantial $610 million debt financing facility in 2023. He emphasized that Tether is capable of providing AI computing services to all its invested companies.
Ardoino’s recent statements regarding Tether’s VC aspirations closely follow the company’s impressive first-quarter net profit of $4.52 billion in 2024, with a substantial portion derived from financial gains on Bitcoin and gold. Despite the substantial profitability, Tether does not impose strict profit targets on startups post-investment.
Ardoino emphasized that Tether’s investment strategy focuses solely on projects deemed highly compelling. As a key player in the cryptocurrency sector, Tether is renowned for its Tether stablecoin (USDT), the largest and most traded cryptocurrency of its kind in the market.
This development comes on the heels of Tether’s business restructuring in April 2024, which saw the formation of multiple divisions like Tether Data, Tether Finance, Tether Power, Tether Edu, Tether Evo, among others. In addition to AI ventures, Tether has also ventured into Bitcoin mining, notably investing $150 million in Jihan Wu’s Bitdeer crypto mining company in May.
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