Tether expects over $10B in net profits for 2024

Tether (CRYPTO:USDT) is expected to end 2024 with net profits exceeding $10 billion, according to its CEO, Paolo Ardoino.

Over the course of the year, Tether’s market valuation grew by around $50 billion, bringing its total valuation close to $140 billion, driven by surging demand for its USDT stablecoin, which is pegged to the US dollar.

Tether’s significant profitability stems primarily from investments in US Treasuries, gold, and other securities, which back its stablecoins and ensure stability for its users.

The adoption of USDT has grown substantially, with Tether reporting in December that 109 million wallets now hold the stablecoin, marking a milestone as Bitcoin (CRYPTO:BTC) and other cryptocurrencies reach unprecedented highs.

This surge in demand reinforces Tether's position as a key player in the cryptocurrency ecosystem, supported by its robust market infrastructure and reserve management.

In 2024, Tether reinvested more than half of its net profits into various industries, including a $775 million investment in the Rumble video-sharing platform, along with ventures in biotech, Bitcoin mining, and other innovative sectors.

“Our investment is just at the beginning. Next year we plan to deploy at least half of the profits in investments including AI,” CEO Paolo Ardoino stated, detailing the company's ongoing commitment to growth.

Tether’s investment focus signals its commitment to diversification, leveraging its financial success to expand its influence across multiple industries beyond the stablecoin market.

The company is also exploring further investments in the US, encouraged by the possibility of improved cryptocurrency regulations under President-elect Donald Trump’s administration.

Tether’s reserves are managed by Cantor Fitzgerald, a financial services firm that recently acquired a stake in Tether.

Cantor Fitzgerald’s CEO, Howard Lutnick, has been nominated by Trump to serve as Commerce Secretary, potentially aligning regulatory frameworks with Tether’s ambitions.

As demand for USDT and other stablecoins continues to grow, Tether’s ability to diversify its portfolio reflects its evolution into a multifaceted financial entity positioned at the crossroads of cryptocurrency and traditional finance.

By strategically reinvesting profits and broadening its market focus, Tether has laid a foundation for long-term sustainability and relevance in emerging sectors such as AI and technology.

With over $10 billion in net profits expected for 2024, Tether not only maintains its dominance in the stablecoin space but also underscores its potential to shape the future of digital finance through innovation and regulatory alignment.

Tether’s ability to adapt and invest strategically highlights its commitment to growth and innovation, ensuring its position as a pivotal player in both the cryptocurrency and broader financial ecosystems.

At the time of reporting, Tether (USDT) price was $0.9984.