CDS Crypto News Crypto News Today- Tether Ventures Beyond Traditional VC Models, Eyes $1B Investment Blitz
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Crypto News Today- Tether Ventures Beyond Traditional VC Models, Eyes $1B Investment Blitz

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Tether Ventures Beyond Traditional VC Models, Eyes $1B Investment Blitz

Crypto News Today- Tether Ventures Ambitious $1B Investment Strategy, Redefining VC Norms

Crypto News– Tether, the leading stablecoin provider, is gearing up for a substantial investment spree into cutting-edge technologies such as emerging markets, artificial intelligence (AI), and biotech, as outlined by CEO Paolo Ardoino.

In a recent interview with Bloomberg, Ardoino revealed Tether’s ambitious plans to allocate a significant portion of its revenue towards investments. Over the next year, Tether aims to inject no less than $1 billion into various ventures through its venture capital arm.

Ardoino emphasized the diligent efforts of Tether’s expanding team, currently comprising 15 members, who meticulously assess numerous proposals on a monthly basis. Notably, Tether’s venture capital division has already committed approximately $2 billion towards innovative technologies like AI and alternative financial infrastructure within the past two years.

Tether to Extend AI Computing Services to All Invested Companies

The Tether CEO also noted that Tether has already injected over $1 billion into AI initiatives, including providing support to the data center operator Northern Data Group through a substantial $610 million debt financing arrangement in 2023.

We’re equipped to offer AI computing services to all our invested companies, Ardoino affirmed. He elaborated, stating, Our focus is on investing in technologies that streamline traditional finance processes, reducing reliance on major tech players like Google, Amazon, and Microsoft.

Ardoino’s recent comments regarding Tether’s venture capital aspirations follow closely after Tether disclosed a record-breaking net profit of $4.52 billion in the initial quarter of 2024. Notably, the bulk of profits, totaling $3.52 billion, stemmed from the firm’s financial gains associated with Bitcoin and gold, with an additional $1 billion sourced from operational profits.

Tether’s Investment Policy Doesn’t Impose Performance Targets on Startups

You can imagine the global buzz when news broke about Tether’s profitable ventures, Ardoino expressed. We’re inundated with tens or even hundreds of proposals monthly, yet only a fraction of those materialize into actual deals, he added.

Ardoino emphasized Tether’s distinctive approach, noting that the company doesn’t impose profitability targets on startups within the first one to two years post-investment. Our investment philosophy revolves around projects we find truly compelling, he stated, underscoring, We’re not your typical VC. Our investments align with our strategic priorities and areas of genuine interest.

As one of the cryptocurrency industry’s behemoths, Tether is renowned for its flagship stablecoin, Tether (USDT), which holds the distinction of being the most widely traded cryptocurrency and stablecoin globally.

This revelation follows Tether’s recent restructuring initiative, dividing its operations into various divisions such as Tether Data, Tether Finance, Tether Power, Tether Edu, Tether Evo, among others, in April 2024.

FAQs

What prompted Tether to venture beyond traditional VC models?

Tether’s decision to explore beyond traditional venture capital (VC) models stems from its commitment to innovation and strategic investment in emerging technologies like AI and biotech. This expansion aligns with Tether’s vision to diversify its investment portfolio while staying at the forefront of technological advancements.

How does Tether plan to execute its $1B investment blitz?

Tether intends to deploy its $1 billion investment fund over the course of the next year through its venture capital arm. The company has a dedicated team tasked with evaluating numerous investment opportunities and selecting those that align with its strategic objectives.

For the latest in crypto updates, keep tabs on Crypto Data Space.

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