Tether CEO Paolo Ardoino recently claimed that his company will make $15 billion in profits this year. He added that he has a 99% profit margin, which would be an astronomical success.
Of course, we should interpret these comments in light of a rumored imminent IPO. Ardoino also claimed that his supposed $500 billion valuation would be “very cheap” and described how to turn away investors.
Tether’s Rising Profits
Tether, the world’s largest stablecoin issuer, posted profits of $13 billion last year. However, it appears to be on track to surpass this staggering figure by 2025. Today, CEO Paolo Ardoino gave a talk in Lugano, Switzerland, where he made some bold claims:
“This year we will be approaching another $15 billion in profits. That is very rare. We have a 99% profit margin, [there’s] No other company in the world has that,” Ardoino said.
Specifically, Ardoino’s talk focused heavily on persistent rumors that the company plans to go public soon. Since Tether has such a high profit margin, this has allowed the stablecoin issuer to show a high level of discretion with “a huge number of companies wanting to invest” in it.
IPO incentives explained
Still, Tether has been making concrete plans to go public for about a month. From this perspective we must understand Ardoino’s comments about the benefits of companies. Even taking all of his claims at face value, it is easy to see how this speech itself constituted a marketing effort.
For example, according to details of the deal negotiations publicly disclosed last month, the company is targeting a valuation of $500 billion. This would place it among the most valuable companies in the world.
However, Ardoino said Tether leaders “have to draw a line in the sand at a valuation that we think is very cheap,” implying it should be much higher.
Whether Tether goes public in the coming months or not, it has some concrete plans to continue generating greater profits.
For example, its impending USAT stablecoin will allow it to return to US regulatory compliance. Tether’s tokenized gold product has also recently enjoyed increasing investment.
Additionally, Tether has been minting new USDT ($1.00) at a high rate, recently using it to inject new liquidity after a bearish fee announcement. In other words, whatever happens in the near future, the company is fully planned to become an industry leader and market driver.
If its profits continue to grow while maintaining these high profit margins, there is no reason to think that Tether’s prominence will end anytime soon.
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