According to Bloomberg, Tether CEO Paolo Ardoino announced that the company is expected to report a net profit of approximately $15 billion this year.
Ardoino stated that this figure is an extraordinary achievement for the company and that they have reached a profit margin of 99%.
Tether continues its rapid growth in stablecoin issuance while also attracting increasing investor interest. The El Salvador-based company is in talks to raise up to $20 billion in exchange for a 3% stake, according to Bloomberg last month.
If this deal goes through, Tether’s market capitalization would reach approximately $500 billion, making the company among the world’s most valuable private companies.
“We will make around $15 billion in profit this year. That’s very rare,” Ardoino said at the Plan B Forum in Lugano, Switzerland.
Tether’s USDT is the most widely used stablecoin globally. Stablecoins are typically cryptocurrencies pegged one-to-one to a traditional currency like the US dollar. Tether’s reserves, which maintain this peg, largely consist of cash and short-term US government bonds. Thanks to high interest rates, Tether generated approximately $13 billion in revenue from these reserves last year.
According to DefiLlama data, the amount of USDT in circulation has reached $183 billion, which accounts for approximately 60% of the total stablecoin market.
Although Ardoino stated that the company does not need external investment, he said that the interest of major investors cannot be ignored:
“We have been contacted by many companies that want to invest in us. But we need to set a reasonable valuation line,” he said.
Tether plans to re-enter the US later this year and launch a new stablecoin project called ‘USAT’.
*This is not investment advice.