Crypto firm Tether is planning to invest over $1 billion in deals over the next year. According to Bloomberg, Chief Executive Officer Paolo Ardoino has stated that the company’s investment arm anticipates investing over $1 billion in transactions in the upcoming year.
According to Ardoino, Tether Investments has a growing team of 15 individuals that evaluate up to hundreds of proposals per month, the majority of which come straight from startup businesses. Its concentration is on biotech, artificial intelligence, and alternative financial infrastructure for emerging economies. In the last two years, the Stablecoin creator has already invested roughly $2 billion in these areas, he said.
Tether To Invest in Highly Lucrative Sectors
The statement about Tether’s investment in AI and emerging economies comes at a time when both these sectors are poised to grow at exponential rates.
It is anticipated that the AI market will develop at a rate of 28.46% per year (CAGR 2024–2030) and reach a value of $826.70 billion by 2030. Comparatively speaking, the US market will be the largest worldwide, with US$50.16 billion in 2024.
Vanguard projects that GDP growth in emerging markets will average 4% globally in 2024, with emerging Asia expected to increase at a rate of roughly 5.0%. While U.S. growth may benefit Mexico and all of Latin America, the firm predicted a growth of 2.0%–2.5% for rising Europe and Latin America.
Both these sectors, if tapped on strategically will result in highly lucrative growth and return on investment.
Tether’s Latest Ventures
In the last two years, Tether’s venture capital division has already invested nearly $2 billion in technologies such as artificial intelligence and alternative banking infrastructure. The CEO of Tether also stated that Tether has already made over $1 billion in AI investments, including providing Northern Data Group, a company that operates data centers, with a $610 million loan financing facility in 2023.
Another investment expedition for Tether came in the form of a Bitdeer share acquisition. In a recent filing with the U.S. Securities and Exchange Commission, the stablecoin issuer claimed to own 25 percent of the shares of Bitdeer, a Bitcoin mining company.
Tether’s most recent investment also included the strategic $18.75 million investment in the fully regulated financial institution XREX Group, which is enabled by blockchain technology. This partnership aimed to advance regulatory technology, stimulate innovation in the digital asset sector, and enable cross-border payments in emerging nations using USDT.
