TLDR:
- Tether plans to invest up to $1 billion in emerging markets, AI, and biotech in the next year through its venture capital arm.
- The company has already spent about $2 billion on technologies like AI and alternative financial infrastructure over the past two years.
Stablecoin giant Tether is making significant investments in technologies like AI, emerging markets, and biotech. CEO Paolo Ardoino revealed that the company’s venture capital arm plans to invest at least $1 billion in deals over the next 12 months. Tether currently has a team of 15 members who evaluate hundreds of pitches monthly and have already invested $2 billion in tech over the past two years. The company’s investments in AI include backing Northern Data Group with a $610 million debt financing facility in 2023. Tether aims to disintermediate traditional finance and reduce reliance on big tech companies like Google, Amazon, and Microsoft.
Ardoino also mentioned that Tether reported a record net profit of $4.52 billion in the first quarter of 2024, with most profits coming from financial gains on Bitcoin and gold. The company does not require startups to meet certain profitability targets following investment, stating that they only invest in projects they find extremely interesting. Tether’s restructuring into divisions like Tether Data and Tether Finance in April 2024 reflects its expanding presence in the cryptocurrency industry.
In addition to AI investments, Tether has also been involved in Bitcoin mining, investing $150 million in Jihan Wu’s Bitdeer in May. The company’s unique investment strategy sets it apart from traditional VCs, focusing on projects it cares about and aligning with its own strategic goals as a major player in the cryptocurrency market.
