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News/Tether Surpasses $10B Profit, Unveils Bold 2025 Plans

Tether Surpasses $10B Profit, Unveils Bold 2025 Plans

Van Thanh Le

Dec 21 2024

22 hours ago4 minutes read
Cubic robot tossing golden coins into pastel dollar vortex

A Milestone Year for Tether

Tether has cemented its position as a powerhouse in the cryptocurrency sector, with net profits for 2024 surpassing an unprecedented $10 billion. This financial triumph stems from the skyrocketing demand for its USDT stablecoin, whose market capitalization surged by nearly $50 billion to exceed $140 billion. With the stablecoin market now valued at over $200 billion, Tether dominates the space, fueled by strategic investments in U.S. Treasuries, gold, and securities backing USDT and other stablecoins. These robust profits have enabled the company to allocate at least half of its annual earnings toward transformative ventures.

One of Tether’s most notable investments came in December 2024, with a $775 million injection into Rumble, a video-sharing platform positioned as a challenger to YouTube. This move included $250 million in cash and a $525 million tender offer to acquire up to 70 million Rumble shares at $7.50 each. The investment sent Rumble’s stock soaring 51.60%, closing at $10.90 during after-hours trading. Tether CEO Paolo Ardoino described the partnership as a mission to bolster freedom of speech and financial independence, signaling the company’s commitment to ventures that align with these principles.

Looking ahead, Tether is diving into artificial intelligence, announcing a proprietary AI platform set for release in Q1 2025. With a $5 billion investment earmarked for AI and related technologies, the company aims to revolutionize how users interact with AI via mobile devices. Ardoino stressed that these plans represent Tether’s vision of reinvesting profits into transformative projects, which he views as critical for long-term growth.

Tether’s strategic foresight extends beyond technology. With the incoming administration of President-elect Donald Trump, the company is positioning itself for potential regulatory advantages. Howard Lutnick, Trump’s nominee for Commerce Secretary and CEO of Cantor Fitzgerald, is linked to Tether through financial ties and is reportedly exploring collaborative opportunities, including a lending program. While Tether faces regulatory headwinds in Europe due to MiCA regulations that have led to USDT delistings on local exchanges, analysts believe these challenges could shift focus to the Americas, where crypto adoption is accelerating.

Meanwhile, Tether’s collaboration with Rumble is set to redefine the platform’s capabilities. Beyond the initial investment, Rumble plans to integrate Bitcoin into its balance sheet, aligning with Tether’s ecosystem of financial innovations. The partnership also explores advertising, cloud solutions, and cryptocurrency payment systems, amplifying the synergy between the two companies.

This article has been refined and enhanced by ChatGPT.

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