Tether is expected to achieve net profits of over $10 billion by the end of 2024, with the company planning to invest more than half of it this year, according to CEO Paolo Ardoino.
This year, the market valuation of Tether's token has increased by approximately $50 billion, reaching nearly $140 billion. The majority of Tether's profits come from investing its reserves in U.S. Treasuries, gold, and other securities to support stablecoins like USDT.
The demand for Tether's USDT stablecoin, which is pegged to the U.S. dollar, has surged due to the unprecedented highs of bitcoin and other cryptocurrencies. A report by Tether in December 2024 revealed that USDT had achieved a significant milestone with 109 million wallets holding the largest stablecoin by market cap.
Tether has already invested more than half of its net profits this year. The company recently announced a $775 million investment in the video-sharing network Rumble, as well as investments in biotech, bitcoin miners, and other industries.
"Our investments are just the beginning. Next year, we plan to allocate at least half of the profits to investments, including AI," Ardoino said.
Tether is considering investing in the U.S. due to the expected improvement in cryptocurrency legislation under President-elect Donald Trump. Tether's reserves are held by Cantor Fitzgerald, which acquired a share in the stablecoin issuer and is led by Howard Lutnick, Trump's selection for Commerce Secretary.