Tether, the world's largest stablecoin issuer, CEO Paolo Ardoino said in an interview that Tether's net profit is expected to exceed $10 billion in 2024. Tether has invested more than half of its net profits into investments, and it will continue to do so next year. Tether also announced a $775 million investment in the video sharing platform Rumble.
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ToggleTether's net profit to exceed $10 billion in 2024, half to be used for investments
According to Bloomberg, Tether CEO Paolo Ardoino said in an interview that Tether's net profit is expected to exceed $10 billion by the end of this year.
With Bitcoin and many other cryptocurrencies reaching new all-time highs, the demand for Tether's USDT stablecoin pegged to the US dollar has surged. According to CoinMarketCap data, the token's market capitalization has increased by nearly $50 billion this year, now exceeding $140 billion. Tether's main revenue comes from the returns on investing its stablecoin reserves in US Treasuries, gold, and Bitcoin.
Ardoino said that this year, Tether has invested more than half of its net profits into investments, and it will continue to do so next year.
Our investments are just getting started, Tether plans to launch its own AI platform in the first quarter, allowing people to interact with AI using their phones.
Tether announces investment in Rumble
Tether announced last Friday that it is investing in the video sharing platform Rumble. Tether will purchase 103,333,333 shares of Rumble Class A common stock at $7.50 per share, totaling $775 million. Of this, $250 million will be used to support growth initiatives.
Rumble is an online video platform, web hosting, and cloud services company headquartered in Toronto, Canada, with a US headquarters in Florida. The company was founded by Chris Pavlovski in 2013 to provide an alternative platform to YouTube for independent video and small content creators.
Rumble has received investments from venture capitalists such as Peter Thiel, Vivek Ramaswamy, and Trump's running mate JD Vance.
In December 2021, Trump Media & Technology Group (TMTG) announced a broad technology and cloud services agreement with Rumble, with Rumble operating part of the Truth Social platform.
Upon the news, Rumble (ticker: RUM) stock price surged over 50% after-hours, reaching $10.79.
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