Tether Expands into Bitcoin Mining, AI, and Education Amidst $111 Billion in Assets and $6 Billion in Profits

Stablecoin provider Tether is undergoing a restructuring and expanding into bitcoin mining, AI, and education. Despite the recent market downturn, Tether's USDT stablecoin has a market capitalization three times that of its closest competitor, USDC. Tether's digital stablecoins are backed by US Treasurys, which offer higher interest rates, making its source of capital effectively free. Tether reported unaudited financial results of $4.5 billion for Q1 2024 and a net equity of $11.4 billion. Tether's CEO, Paolo Ardoino, believes the company will play a significant role in creating technologies that empower people. Tether's CTO, CFO, and shareholder have all become billionaires, according to Forbes' billionaire ranking. Tether has restructured into four divisions: Finance, Data, Power, and Edu, and has invested in bitcoin mining, emerging technologies, and biotech. Tether is also seeking to establish in-house AI expertise to disintermediate middlemen. However, some experts are sceptical about Tether's move into AI and question the source of capital for the company's new investments. Tether's stablecoin dominance is also being challenged by Circle's USDC, which has overtaken USDT in monthly transactions. Additionally, a new version of the bipartisan stablecoin bill could spur competition from traditional banks.