Tether to Expand And Build Multi-Sector Empire After $20B Funding

Tether:- The USDT giant Tether is set to raise $20 billion in funding. The funding set to be via private placement will see Tether selling its 3% stake – putting it at a valuation of $500 billion. This will place Tether in the ranks of OpenAI and Elon Musk’s Tesla – making it first of the crypto businesses in that line.

The company, with its recent entry into the US, already holds a dominant place in the stablecoin space. At $173.B market cap of USDT, its stablecoin is among the top 3 by market cap among crypto assets.

Tether’s Multi-sector Empire

Now, with the $20 billion funding in line, Tether is set to expand and build its business in non-crypto sectors as well.

Tether CTO Paolo Ardaino said in a X post that the funding is set “to maximize the scale of the Company’s strategy across all existing and new business lines.” This includes stablecoins and exapanding their distribution ubiquity, AI, commodity trading, energy, communications and media.

A breakdown of these sectors reads as follows:

1. AI – With its TetherAI under development, Tether has shifted some of its profits into high-tech bets. It has made a publicly reported $200 million majority investment in Blackrock Neurotech (a brain-computer interface company) — and has stated that it’s building AI-related divisions and infrastructure.

2. Commodity trading – Tether currently issues Tether Gold (XAU₮) – a token backed by physical gold and publishes backing/flows. It has also made upstream moves in the mining/refining/royalty space firms to integrate tokenized commodity products with physical supply chains.

Also Read: Kaia to Launch Stablecoin SuperApp

3. Energy & Bitcoin mining – Tether has also invested in bitcoin-mining firms and renewable energy projects to power mining operations. This includes significant stakes and private placements in Bitdeer at 21% and partnerships to source renewables for mining. The company has signalled plans to scale mining and related energy infrastructure.

4. Communications & Media – Tether has co-founded peer-to-peer communications projects (Keet/Holepunch). It has also made sizable investments in media/communications platforms – e.g., the reported strategic investment in Rumble.

Thus, in all these sectors, while the firm has started marking its footprint, the funding is set to increase that as Paolo puts it “by several orders of magnitude.”

Tether Chairman to be 5th Richest Person

If Tether completes the reported $15–$20 billion private raise, it would vastly outscale rival Circle’s post-IPO market capitalization – around the $30-$50 billion range. The augurs well for cementing Tether’s dominance in stablecoins and related infrastructure.

Bloomberg’s calculations show that Giancarlo Devasini – with an estimated 47% stake – would see his holding valued at about $224 billion. Interestingly, this is a sum that would place him ahead of Warren Buffett on current billionaire rankings.

Nonetheless, the deal’s structure, investor mix and transparency commitments will determine how far the revaluation would amplify Tether’s business stakes.

Also Read: SOL Strategies CEO Leah Wald Steps Down

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