Tether CEO Paolo Ardoino recently claimed that the company will make $15 billion in profits this year. He added that the profit margin was 99%, which would be an astronomical success.
Of course, we have to interpret these comments in light of the rumored impending IPO. Ardoino also said the company’s supposed $500 billion valuation would be “very low” and would scare off investors.
Tether profits soar
Tether, the world’s largest stablecoin issuer, posted a profit of $13 billion last year. However, it looks like we are on track to surpass this impressive number by 2025. Speaking today in Lugano, Switzerland, CEO Paolo Ardoino made a bold claim:
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“This year, we will move closer to another $15 billion in profits, which is very rare. We have a 99% profit margin, and no other company in the world has this,” Ardoino claimed.
Specifically, Ardoino’s talk centered around persistent rumors that the company plans to go public soon. Because Tether has such a high profit margin, the stablecoin issuer can demonstrate a high level of discretion to the “huge number of companies that wish to invest.”
IPO incentive explanation
Still, Tether has been making concrete plans for going public for about a month. It is in this light that Mr. Ardoino’s comments on corporate profits need to be understood. Even if we take all of his factual claims at face value, it is easy to see how this speech itself constituted a marketing effort.
For example, the company is aiming for a $500 billion valuation, according to details released during deal negotiations last month. That would make the company one of the most valuable companies in the world.
Nevertheless, Ardoino argued that Tether’s leaders “have to draw the line at a valuation that appears to be very low,” suggesting that the valuation should be much higher.
Whether or not Tether goes public in the coming months, the company has some concrete plans to continue generating higher returns.
For example, the impending USAT stablecoin will enable a return to US regulatory compliance. Tether’s tokenized gold products have also seen a surge in investment recently.
Additionally, Tether has been minting new USDT at high rates, recently using it to inject fresh liquidity following bearish tariff announcements. In other words, no matter what happens in the near future, the company fully plans to become an industry leader and market mover.
If profits continue to grow while maintaining such high margins, there’s no reason to think Tether’s prominence will end anytime soon.
