According to Bloomberg, Tether CEO Paolo Ardoino announced that the company expects to report net income of about $15 billion this year.
Ardoino said this figure was an extraordinary achievement for the company, with a profit margin of 99%.
While Tether continues to grow rapidly through stablecoin issuance, investor interest is also increasing. Bloomberg reported last month that the El Salvador-based company was in talks to raise up to $20 billion in exchange for a 3% stake.
If the deal goes through, Tether’s market capitalization would reach around $500 billion, making it one of the world’s most valuable privately held companies.
“This year we will make about $15 billion, which is very unusual,” Ardoino said at the Plan B Forum in Lugano, Switzerland.
Tether’s USDT is the most widely used stablecoin in the world. Stablecoins are cryptocurrencies that are typically pegged 1:1 to a traditional currency, such as the US dollar. Tether’s reserves, which maintain this peg, consist primarily of cash and U.S. Treasury bills. Thanks to high interest rates, Tether made about $13 billion in revenue from these reserves last year.
According to DefiLlama data, USDT has a circulating value of $183 billion, accounting for approximately 60% of the total stablecoin market.
Ardoino said the company does not need outside investment, but said interest from major investors cannot be ignored.
“We have been contacted by many companies who 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.
