tl;dr
Paolo Ardoino, Tether’s CEO, is leading the company into venture capital, focusing on emerging areas like AI, competing with tech giants. Since Ardoino became CEO in December 2023, Tether has been investing its profits, bolstering the USDT reserve and funneling the rest into Tether Evo, the company’...
Paolo Ardoino, Tether’s CEO, expands the company's venture capital focus on AI and emerging technologies, aiming to rival tech giants like Microsoft, Google, and Amazon.
Tether, under Ardoino's leadership, strategically reinvests profits in USDT reserve and Tether Evo, making significant moves in AI and brain-computer interface technologies.
Tether's expansion and profit growth amid scrutiny from regulators and allegations of money laundering prompt plans for doubling the workforce and strengthening compliance measures.
Paolo Ardoino, Tether’s CEO, is leading the company into venture capital, focusing on emerging areas like AI, competing with tech giants. Since Ardoino became CEO in December 2023, Tether has been investing its profits, bolstering the USDT reserve and funneling the rest into Tether Evo, the company’s venture investment arm. Tether has made significant moves, including acquiring a majority stake in neural implant technology firm Blackrock Neurotech and investing in Northern Data Group. Ardoino emphasized Tether’s commitment to decentralization, applying it to emerging technologies like AI and brain-computer interfaces. Tether aims to reinvest over 90% of its profits in ventures aligned with its vision, while the bulk of its reserve consists of short-term US government bonds. Tether reported $5.2 billion in earnings for the first half of 2024, backed by a $118.5 billion reserve.
Tether has faced scrutiny, settling a $41 million case with US regulators and facing accusations of using questionable methods to secure banking services. The UN and blockchain analytics firms have flagged USDT as a tool frequently used in money laundering and terrorist financing, claims that Tether has strongly denied. Ardoino announced plans to double the company’s workforce by mid-2025, with a significant expansion of its compliance team to monitor potentially illicit activities involving USDT through advanced automated tools.
Paolo Ardoino, Tether’s CEO, is steering the company into venture capital, with a focus on emerging areas like AI, as revealed in his recent interview with WIRED. With billions in reserves, Tether is positioning itself to compete with tech giants such as Microsoft, Google, and Amazon.
TETHER’S PROFIT VENTURES
Since Ardoino took over as CEO in December 2023, Tether has been exploring new avenues to invest its growing profits. Some funds have been allocated to bolster the USDT reserve, while the rest are being funneled into Tether Evo, the company’s venture investment arm. This division has already made significant moves, including acquiring a majority stake in neural implant technology firm Blackrock Neurotech and investing in Northern Data Group, a data center operator whose infrastructure supports AI model training. Ardoino highlighted Tether’s commitment to the ethos of decentralization, applying it to emerging technologies like artificial intelligence and brain-computer interfaces. He stressed the importance of an independent player in the AI space to counteract the influence of major tech companies. Similarly, Tether aims to support BCI technology that prioritizes privacy. Regarding investment capital, Ardoino revealed that while Tether will continue to prioritize its stablecoin business, over 90% of its profits will be reinvested in ventures aligned with its vision. Notably, the bulk of Tether’s reserve is composed of short-term US government bonds, which have become more lucrative as interest rates have risen in response to inflation. This strategy has resulted in significant profits, with Tether reporting $5.2 billion in earnings for the first half of 2024, backed by a $118.5 billion reserve.
TETHER’S EXPANSION AMID SCRUTINY
Despite its prominence, Tether has faced considerable scrutiny. In 2021, the company settled a $41 million case with US regulators over allegations that it had misrepresented the composition of its reserves. In 2023, accusations arose suggesting that Tether had used questionable methods to secure banking services during its early operations. Additionally, the UN and blockchain analytics firms have flagged USDT as a tool frequently used in money laundering and terrorist financing, claims that Tether has strongly denied. Amid the ongoing concerns, Ardoino has announced plans to double the company’s workforce by mid-2025, with a significant expansion of its compliance team. This growth strategy aims to bolster the company’s ability to monitor potentially illicit activities on secondary markets involving USDT through advanced automated tools.
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More about TriMas Corporation
Company: TriMas Corporation
Overview: TriMas Corporation manufactures and supplies products for the consumer, aerospace, and industrial end markets globally. The company is headquartered in Bloomfield Hills, Michigan.
Industry: Manufacturing
Segment: Metal Forgings & Stampings
Market Cap: 965373000
Stock Price: $24.23
Price Change: $0.16
Percentage Change: 0.98%
Previous Close: $22.19
Price-Earnings Ratio (P/E): 0.0444
Shares Outstanding: 912500000
Dividend Yield: 40
EPS: $0.034
EBITDA: $0.031