CEO Paolo Ardoino of stablecoin behemoth Tether intends to spend a sizable share of its earnings on technologies including biotech, artificial intelligence (AI), and new markets.

Investment Strategy and Focus

Through its venture capital division, Tether plans to commit at least $1 billion into deals over the next 12 months, Ardoino said in an interview with Bloomberg released on June 11.

The CEO claims that Tether has a 15-person, growing staff that reviews hundreds of pitches monthly. Over the previous two years, Tether’s VC arm has already spent around $2 billion on tech, including artificial intelligence and alternative finance infrastructure.

Tether has already committed more than $1 billion to artificial intelligence, supporting Northern Data Group, a data center operator with a $610 million debt financing facility in 2023. “We can provide all the businesses in which we have invested in artificial intelligence computing,” Ardoino added, noting the importance of disintermediation from conventional finance.

Financial Performance and Investment Approach

Ardoino’s comments on Tether’s VC aspirations follow Tether’s first-quarter 2024 net profit of $4.52 billion. Operating profits added another $1 billion; most profits, $3.52 billion, came from the firm’s financial gains on Bitcoin and gold.

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“You could imagine that the news of Tether’s profitable business traveled the globe,” said Ardoino. Despite the numerous deals available, Tether selects a small percentage for investment. Tether does not mandate businesses to meet specific profitability targets over the next one to two years following funding. “We only invest in projects we find very fascinating,” he stated.

Tether’s Expanding Ventures

Tether runs the largest traded cryptocurrency and stablecoin available on the market. The company restructured in April 2024 into multiple divisions, including Tether Data, Tether Finance, Tether Power, Tether Edu, Tether Evo, and more.

Apart from AI investments, Tether has been progressively active in Bitcoin mining, investing $150 million in Jihan Wu’s crypto mining company Bitdeer in May.

Ardoino’s vision for Tether includes a strong focus on technology that facilitates disintermediation from traditional finance, emphasizing the importance of independence from major tech firms like Google, Amazon, and Microsoft.

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