Tether's $20 Billion Venture Arm Exceeds Its Stablecoin Business

Tether's business model is shifting from a simple stablecoin to a venture capital powerhouse. The company has built a portfolio valued at over $20 billion across more than 120 firms, with investments in AI, energy, bitcoin mining, and emerging-market payments.

The excess reserve buffer fell to $4.11 billion from $8.23 billion, but this is not a cause for concern. Tether earns around $1.5 billion per quarter, and the surplus funds are used to invest in equity stakes, not to back its stablecoin.

The company's deals sheet reads like that of a venture capital firm, with investments in robotics, AI, and data analytics. It has also taken a stake in Neura Robotics in Germany and Bitdeer, a bitcoin miner.