As a researcher with a background in the cryptocurrency industry, I find Tether’s decision to invest $1 billion in technologies such as biotech, financial infrastructure, and artificial intelligence (AI) intriguing. Tether, the issuer of USDT, the largest stablecoin in the market, has already invested around $2 billion through its VC arm in AI and alternative financial infrastructure.
Tether, the company behind the USDT stablecoin, intends to allocate an impressive $1 billion investment towards advanced technologies, including biotechnology, financial infrastructure development, and artificial intelligence (AI).
As a seasoned analyst, I’ve observed that Tether, through its venture capital arm, has already invested approximately $2 billion in innovative technologies. Among these investments are cutting-edge solutions like artificial intelligence (AI) and alternative financial infrastructure.
Tether Plans Significant Investment
Based on the announcement from Tether CEO Paolo Ardoino, the firm intends to invest a minimum of one billion dollars via its venture capital arm. Ardoin revealed that Tether’s assessment team, which continues to expand, scrutinizes hundreds of proposals monthly. Over the recent past, Tether has already allocated approximately two billion dollars towards technologies including artificial intelligence.
Tether Investments boasts a expanding workforce of fifteen individuals, all dedicated to assessing potentially up to hundreds of proposals monthly. The majority of these submissions originate from startups themselves. Tether’s areas of interest lie in the realms of alternative financial frameworks for developing economies, artificial intelligence, and biotechnology – sectors where they have previously invested approximately $2 billion over the past two years.
Ardoino noted that Tether had previously invested a significant amount in artificial intelligence, to the tune of $1 billion. Among their investments was a $610 million debt financing deal with Northern Data Group, which was made public in 2023.
“We provide AI computing as an option to the businesses we’ve financially supported. This is part of our strategy to invest in technology that promotes bypassing traditional intermediaries in finance. It reduces the dependency on dominant tech firms such as Google, Amazon, and Microsoft.”
Record Profits for Tether
As a researcher examining Tether’s recent financial disclosures, Ardoino’s remarks regarding their venture capital (VC) aspirations follow an exciting announcement of their record-breaking net profit of approximately $4.52 billion during the first quarter of 2024. Notably, around $3.52 billion of these profits stemmed from the substantial appreciation of their Bitcoin and gold reserves. The remaining $1 billion can be attributed to operational revenues generated from their US Treasury Holdings.
Only Investing In Interesting Projects
As a crypto investor following Tether’s moves, I can tell you that Ardoino revealed they receive numerous business proposals each month, and only a small fraction of those get approved. Contrary to popular belief, there’s no set profitability requirement for companies seeking Tether’s investment. Instead, the team invests based on their personal interest in the project.
“The announcement that Tether is earning substantial profits has spread globally. We receive numerous business proposals each month, yet we execute only a tiny fraction of them. Our investment approach is limited to projects that truly captivate us. Unlike traditional venture capital firms, we don’t invest for the sake of it; instead, we put our resources into endeavors that align with our values and strategic vision.”
Tether, a leading company within the cryptocurrency sector, is responsible for issuing USDT, the most widely used stablecoin. Recently, Tether announced plans to make significant investments, following its corporate restructuring earlier this year. The reorganization resulted in the creation of several new business units: Tether Data, Tether Power, Tether Finance, Tether Evo, and Tether Edu. Additionally, Tether has been expanding into Bitcoin mining, with a reported $150 million investment in crypto mining company Bitdeer in May.
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2024-06-13 15:04