Tether is considering a major investment in German company Neura Robotics, exploring participation in a funding round worth up to $1.16 billion, the Financial Times reported on Friday.
Key points to remember:
- Tether is considering a $1.16 billion investment in German company Neura Robotics, valuing the startup at $11.6 billion.
- The stablecoin issuer has generated more than $10 billion in profits this year and is expanding into AI, robotics, data centers, mining and commodity lending.
- CEO Paolo Ardoino supports decentralized AI initiatives and scales up Tether’s $1.5 billion lending effort.
The discussions, cited by anonymous sources, reportedly value the fast-growing robotics startup at between $9.29 billion and $11.6 billion.
Tether Profits Surpass $10 Billion as Investment Intensifies
The world’s largest stablecoin issuer has expanded its investment reach as profits from issuing USDT continue to rise.
Tether generated more than $10 billion in profits in the first three quarters of this year alone, following a strong 2024.
Using that cash flow, the company has spent the last year expanding into artificial intelligence, data centers, energy infrastructure and Bitcoin mining, as part of a broader strategy to diversify beyond its core business.
Neura Robotics fits perfectly into this expansion process. The company is preparing to deploy its first humanoid robot, initially targeting industrial customers before launching into the consumer market.
Neura has previously stated its goal of producing 5 million units by 2030 and hopes to spark what it calls an “iPhone moment” for robotics.
Its January fundraising raised nearly $140 million from backers including BlueCrest, C4 Ventures, Lingotto and Volvo Cars Tech Fund.
If the agreement goes through, Neura would find itself in direct competition with Elon Musk’s Tesla, which is also launching into mass production of versatile robots.
Tether CEO Paolo Ardoino has shown growing interest in decentralized AI, supporting internal research through a skunkworks unit focused on open-source, peer-to-peer machine learning under the “Tether AI” banner.
Tether is aggressively expanding into commodity trading lending, deploying about $1.5 billion in credit as it moves to compete directly with banks, Bloomberg reported.
CEO Paolo Ardoino said the company plans to expand its lending in oil, cotton, wheat and other agricultural markets, offering loans in U.S. dollars and USDT, its stable currency backed by Treasuries and precious metals.
Although still smaller than the industry’s major banks, Tether’s reserves of nearly $200 billion give it significant lending capacity.
Tether could become the most profitable company in the world, analyst says
Tether looks unstoppable right now, with the world’s largest stablecoin issuer on track to generate around $15 billion this year.
Bitwise Chief Investment Officer Matt Houga recently predicted that Tether could become the most profitable company in the world, potentially overtaking Saudi Aramco.
It is the third largest digital asset in the world, with a market capitalization of $183.8 billion, up 50% from the same period last year.
Although Tether maintains strong cash reserves, recent reports suggest the company could seek $20 billion in new capital for a 3% stake.
Such a transaction would establish a valuation close to $500 billion, eclipsing Netflix and Samsung while moving closer to iconic financial services brands like Mastercard.
The company has simultaneously expanded its precious metals holdings, with its gold reserves now exceeding $12 billion.
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