Tether allocates $5 billion in profits to U.S. firms, maintaining $120 billion in U.S. debt.

Tether, which issues the leading stablecoin USDT, has announced that it has invested approximately $5 billion of its profits into American companies and infrastructure over the last two years.

In a recent post, CEO Paolo Ardoino revealed the company’s substantial investments in U.S. businesses and innovative technologies, reflecting what many perceive as a commitment to supporting American initiatives.

Ardoino stated that their investments span various sectors, including decentralized media, neuroscience, and Bitcoin mining. Key beneficiaries of this funding include Rumble, a video-sharing service; Blackrock Neurotech, which specializes in brain-computer interfaces; and several Bitcoin mining operations such as Swan Bitcoin.

One notable investment was the acquisition of more than 100 million Class A shares of Rumble for $770 million in January, aimed at bolstering decentralized content platforms. Following this, Tether collaborated with Rumble to create a non-custodial wallet for Bitcoin and stablecoins.

Additionally, Tether invested $200 million in Blackrock Neurotech in April 2024. This funding has reportedly contributed to significant medical innovations, especially in restoring communication abilities for patients via brain-implanted devices.

The company is also investing in Bitcoin infrastructure, directing current and future hashrate to OCEAN, a mining pool operated by Mummolin Inc. However, tensions have arisen with Swan Bitcoin, leading to ongoing legal conflicts.

Regarding Tether’s investments in U.S. Treasuries, the company has established a strong presence, holding over $120 billion through direct acquisitions, money market funds, and reverse repo agreements.

This positions Tether as the 19th largest holder of U.S. Treasury bills worldwide, exceeding Germany’s reported exposure of $111.4 billion, according to data from the U.S. Treasury Department.

These treasury holdings function as reserves for USDT, playing a crucial role in maintaining its value pegged to the dollar, with most assets held at Cantor Fitzgerald, a prominent financial institution in the U.S.

Tether’s bold investment approach follows a record-setting year, with the firm reporting over $13 billion in net profits for 2024. This financial success has bolstered its balance sheet, allowing for growth in sectors like agriculture, sports, and media amidst regulatory scrutiny.

Despite USDT being the largest stablecoin and the third-largest cryptocurrency by market capitalization, the regulatory landscape in the U.S. has prompted Tether to explore the possibility of launching a new stablecoin designed to meet impending regulations.