Tether, a major player in the stablecoin market, plans to invest a large part of its revenue in emerging markets, artificial intelligence (AI), and biotech, according to CEO Paolo Ardoino. Over the next year, Tether expects to pour at least $1 billion into various deals through its venture capital arm, as revealed in an interview with Bloomberg on June 11.
Tether’s venture capital team, which consists of 15 members, reviews hundreds of investment proposals monthly. In the past two years, the firm has already spent about $2 billion on technologies like AI and alternative financial infrastructures.
One notable investment includes over $1 billion into AI, with a significant portion—$610 million—going to the data center operator Northern Data Group in 2023. Ardoino emphasized that Tether can provide AI computing resources to all the companies it invests in. He highlighted the importance of reducing dependence on major tech companies like Google, Amazon, and Microsoft by investing in disintermediation technologies.
These investment plans follow Tether’s announcement of a record net profit of $4.52 billion in the first quarter of 2024, largely driven by financial gains from Bitcoin and gold, amounting to $3.52 billion, with the remaining $1 billion coming from operating profits.
Tether’s investment approach is distinctive. According to Ardoino, Tether does not require the startups it backs to achieve specific profitability targets within the first one or two years. Instead, the company focuses on projects it finds highly interesting and aligns with its strategy.
Tether operates the leading stablecoin, USDT, and recently restructured its business into several divisions, including Tether Data, Tether Finance, Tether Power, Tether Edu, and Tether Evo. Besides its focus on AI, Tether has also ventured into Bitcoin mining, investing $150 million in Jihan Wu’s crypto mining firm Bitdeer in May.
