cryptoslate.com
Tether, the issuer of the world’s largest stablecoin $USDT, has disclosed that it has reinvested around $5 billion of its profits into US-based companies and infrastructure over the past two years.
In a May 26 post on X, Tether CEO Paolo Ardoino disclosed that the company has made significant investments across American businesses and emerging technologies, reflecting what many described as a “pro-America” strategy.
According to Ardoino, the investments cover a range of sectors, including decentralized media, neuroscience, and Bitcoin mining. Notable recipients include Rumble, a video-sharing platform; Blackrock Neurotech, a brain-computer interface (BCI) startup; and several Bitcoin mining firms such as Swan Bitcoin.
In one of its most significant moves, Tether acquired over 100 million Class A shares of Rumble for $770 million in January to support decentralized content platforms. Since then, the $USDT issuer has collaborated with Rumble to launch a non-custodial Bitcoin and stablecoin wallet.
Another $200 million was funneled into Blackrock Neurotech in April 2024. The funding has reportedly supported medical breakthroughs, including efforts to restore patient communication abilities through brain-implanted devices.
The company is also backing Bitcoin infrastructure. It has started allocating current and future hashrate to OCEAN, a mining pool operated by Mummolin Inc., a Wyoming-based firm. However, its relationship with Swan Bitcoin has become strained, with a legal dispute now underway.
Tether’s US treasuries
Beyond these equity investments, Tether has built a prominent position in US Treasuries. The company holds over $120 billion in total exposure through direct purchases, money market funds, and reverse repo agreements.
This makes Tether the 19th-largest holder of US Treasury bills globally, surpassing Germany’s $111.4 billion exposure, based on US Treasury Department data.
The assets serve as its stablecoin reserves and are critical in maintaining $USDT’s dollar peg. Most are reportedly held at Cantor Fitzgerald, a leading US financial institution.
Meanwhile, Tether’s aggressive investment strategy follows a record-breaking year. In January, the firm reported over $13 billion in net profits for 2024. These earnings have strengthened its balance sheet and allowed for further expansion in agriculture, sports, and media despite ongoing scrutiny from regulators.
While $USDT remains the largest stablecoin and the third-biggest crypto asset by market cap, regulatory uncertainty in the US has led Tether to consider issuing a separate stablecoin tailored to comply with forthcoming rules.