The world's largest stablecoin issuer, Tether Holdings Ltd., expects its profits to approach $15 billion this year, with astonishing profitability attracting investors to compete for stakes in this privately held company. The company's CEO, Paolo Ardoino, confirmed that despite holding approximately $183 billion in circulating USDT, Tether is not lacking external investment but is negotiating with heavyweight investors, including SoftBank Group Corp. and Ark Investment Management LLC, to sell about 3% of its shares to raise $20 billion. If the deal is reached, Tether's valuation could soar to $500 billion, placing it among the most valuable private companies in the world.
According to Bloomberg, Tether's main source of income is its reserves. Tether's USDT tokens are backed by reserves primarily composed of cash and short-term U.S. government bonds, and the high interest rate environment has made these reserves a source of significant profit.
Paolo Ardoino stated during an interview at the Plan B Forum in Switzerland:
“This year we will approach a profit of 15 billion USD. This is very rare.” He also added, “Our profit margin is 99%. No other company in the world can achieve this.”
According to data from DefiLlama, the circulating USDT is currently valued at approximately 183 billion USD, accounting for about 60% of the entire stablecoin market, making it the absolute leader in the stablecoin field. Previously, Tether's profits last year reached about 13 billion USD, mainly due to high interest rates.
Despite its strong profitability, Tether is not lacking in funds, but its extremely high profit margins and massive market influence have attracted a large number of companies hoping to invest in equity.
Ardoino mentioned: “We have been contacted by a large number of companies that wish to invest in us. We had to set a limit on the valuation, which we believe is very cheap.”
According to reports, heavyweight investors participating in the discussions include SoftBank Group Corp. and Ark Investment Management LLC.
Strategic significance:
Tether is undergoing a multifaceted global expansion to solidify its market position and take advantage of favorable regulatory environments.
Tether plans to return to the U.S. market later this year with a new stablecoin project called USAT, aimed at leveraging President Donald Trump's pro-cryptocurrency policies. This move is a key step for Tether in seeking regulatory compliance and greater influence in its home market.
Tether has also rapidly expanded its investment portfolio, including a high-profile investment in the Italian football club Juventus. As of this month, Tether has accumulated a 11.5% stake in the club and has nominated two candidates to join the board of Juventus.
Ardoino stated that this move is for the fans (tifosi), “We want to give the fans a board representative for the first time.” Although Ardoino personally expressed a desire to buy the club, he clarified that there is currently no such plan. This investment demonstrates Tether's ambition to extend its influence beyond the crypto space into the global traditional finance and sports industries.
Tether is expected to solidify its position as the “money printer” of the crypto industry with an astonishing annual profit of $15 billion. A potential valuation of $500 billion and interest from global investment giants reflect the strategic importance of stablecoins in the global digital economy. As Tether actively re-enters the U.S. and lays out its plans in the traditional financial sector, it is transforming from a crypto company into a fintech giant with global systemic impact, with its transparency and regulatory compliance continuing to be a focal point of market attention in the future.
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