Tether to Invest $1B in Tech Ventures: Focus on AI and Biotech
Summary:
Stablecoin leader, Tether, projects spending at least $1 billion over the next year on various ventures, notably in emerging markets, artificial intelligence (AI), and biotech. Through its venture capital branch, Tether has thus far invested approximately $2 billion in tech-oriented subjects, including AI and alternative financial systems over the past two years. Tether CEO, Paolo Ardoino, underlined Tether's distinct investment strategy which is not tied to stringent profitability targets but instead focuses on projects that evoke high interest. Additionally, Ardoino indicated Tether's increasing involvement in Bitcoin mining.
Tether, the dominant player in the stablecoin sector, has revealed ambitious plans to focus a substantial amount of its earnings into high-tech areas such as frontier markets, artificial intelligence (AI), and biotechnology as divulged by CEO Paolo Ardoino. Over the forthcoming year, Tether predicts to channel no less than $1 billion into ventures via its venture capital segment, stated Ardoino, sharing this in a discussion with Bloomberg on June 11. As per Ardoino, Tether's rapidly expanding team, now featuring 15 individuals, appraises a multitude of investment proposals each month. Thus far, Tether's VC division has earmarked around $2 billion for technologies encompassing AI and non-traditional financial infrastructures, spanning the previous two years.
Ardoino, in his remarks, disclosed that Tether has already devoted in excess of $1 billion towards AI, such as supporting Northern Data Group, a data center enterprise, by providing them with a debt financing facility exceeding $610 million in 2023. According to Ardoino, “By enabling AI computing, we can support all the firms we've poured investment into. Our strategy is centered around placing our bet on technology that creates disruption in conventional finance. This approach will ensure we rely less on tech powerhouses like Google, Amazon, and Microsoft.”
Ardoino unveiled his plan for Tether's venture capital future just days after revealing that Tether set a new earnings record with $4.52 billion net profit for the first quarter of 2024. The bulk of these profits, comprising $3.52 billion, were the result of the company's financial gains made from Bitcoin (BTC) and gold, with the remaining $1 billion drawn from operational profits. In contrast to the traditional venture capital model, Tether doesn't tie investment to the achievement of specific profitability targets within the initial two years post-investment. Instead, as Ardoino expressed, the choice of investment is guided by the potential interest of the projects.
As one of the industry's largest cryptocurrency enterprises, Tether oversees the flagship Tether (USDT) stablecoin, which holds the position as the market's most widely traded cryptocurrency and stablecoin. This news follows a few months after Tether undertook the partition of its enterprise into multiple divisions, this restructuring took place in April 2024 and saw the establishment of Tether Data, Tether Finance, Tether Power, Tether Edu, Tether Evo, and several other divisions. In addition to its involvement in AI, Tether has shown increasing interest in Bitcoin mining and invested $150 million in Bitdeer, crypto mining firm helmed by Jihan Wu, in May.
Published At
6/11/2024 5:01:31 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.