Tether invests $5 billion profit into US companies while holding $120 billion in US debt

Tether, the issuer of the world’s largest stablecoin USDT, has disclosed that it has reinvested around $5 billion of its profits into US-based companies and infrastructure over the past two years.

In a May 26 post on X, Tether CEO Paolo Ardoino disclosed that the company has made significant investments across American businesses and emerging technologies, reflecting what many described as a “pro-America” strategy.

According to Ardoino, the investments cover a range of sectors, including decentralized media, neuroscience, and Bitcoin mining. Notable recipients include Rumble, a video-sharing platform; Blackrock Neurotech, a brain-computer interface (BCI) startup; and several Bitcoin mining firms such as Swan Bitcoin.

In one of its most significant moves, Tether acquired over 100 million Class A shares of Rumble for $770 million in January to support decentralized content platforms. Since then, the USDT issuer has collaborated with Rumble to launch a non-custodial Bitcoin and stablecoin wallet.

Another $200 million was funneled into Blackrock Neurotech in April 2024. The funding has reportedly supported medical breakthroughs, including efforts to restore patient communication abilities through brain-implanted devices.

The company is also backing Bitcoin infrastructure. It has started allocating current and future hashrate to OCEAN, a mining pool operated by Mummolin Inc., a Wyoming-based firm. However, its relationship with Swan Bitcoin has become strained, with a legal dispute now underway.

Tether’s US treasuries

Beyond these equity investments, Tether has built a prominent position in US Treasuries. The company holds over $120 billion in total exposure through direct purchases, money market funds, and reverse repo agreements.

This makes Tether the 19th-largest holder of US Treasury bills globally, surpassing Germany’s $111.4 billion exposure, based on US Treasury Department data.

The assets serve as its stablecoin reserves and are critical in maintaining USDT’s dollar peg. Most are reportedly held at Cantor Fitzgerald, a leading US financial institution.

Meanwhile, Tether’s aggressive investment strategy follows a record-breaking year. In January, the firm reported over $13 billion in net profits for 2024. These earnings have strengthened its balance sheet and allowed for further expansion in agriculture, sports, and media despite ongoing scrutiny from regulators.

While USDT remains the largest stablecoin and the third-biggest crypto asset by market cap, regulatory uncertainty in the US has led Tether to consider issuing a separate stablecoin tailored to comply with forthcoming rules.