Tether, a leading stablecoin company, plans to allocate a substantial portion of its revenue to invest in emerging markets, artificial intelligence (AI), and biotechnology, according to CEO Paolo Ardoino.
In an interview with Bloomberg on June 11, Ardoino revealed that Tether expects to invest at least $1 billion in deals over the next year through its venture capital arm.
Tether’s team of 15 members evaluates hundreds of investment pitches monthly, and the company has already invested about $2 billion in technologies like AI and alternative financial infrastructure over the past two years.
Tether aims to offer AI computing resources to all the companies it invests in.
Ardoino highlighted that the company has already invested more than $1 billion in AI, including a significant $610 million debt financing facility for the data center operator Northern Data Group in 2023.
“We can offer AI computing to all the companies we have invested in,” Ardoino said.
“It’s all about investing in technology that helps with disintermediation with traditional finance. Less reliance on the Big Tech companies like Google, Amazon and Microsoft.”
These remarks follow Tether’s report of a record net profit of $4.52 billion in the first quarter of 2024.
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The majority of profits, $3.52 billion, were derived from financial gains on Bitcoin (BTC) and gold, while the remaining $1 billion came from operating profits.
Ardoino emphasized that Tether doesn’t require startups to meet specific profitability targets in the first one to two years after investment.
“You can imagine that the news that Tether is making good money went around the world,” he said.
“We get tens or hundreds of deals per month that are on the table, and we only end up doing a very small percentage of that.”
“Our investment policy is investing only in projects we find extremely interesting,” Ardoino added.
“We are not a classic VC.
“We do invest in things that we care about, and we have our own strategy.”
As one of the largest companies in the cryptocurrency industry, Tether operates the USDT stablecoin, the most traded cryptocurrency and stablecoin in the market.
The company recently restructured into several divisions, including Tether Data, Tether Finance, Tether Power, Tether Edu, and Tether Evo, in April 2024.
In addition to AI investments, Tether has been actively involved in Bitcoin mining, investing $150 million in Jihan Wu’s crypto mining firm Bitdeer in May.
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