Government bond holdings exceed $120 billion by Tether
In the rapidly evolving world of cryptocurrency, Tether, the issuer of the largest stablecoin (USDT), continues to make waves. The company has recently announced investments totalling two billion dollars, primarily in AI, energy, P2E (Peer-to-Peer), and data processing.
On the 30th of April, Tether acquired a 70% stake in South American energy provider Adecoagro, promptly replacing the management. However, it's important to clarify that no such takeover occurred in May 2025. Instead, Adecoagro is involved in acquiring Fertil S.A. shares and cooperating with Tether on Bitcoin mining using renewable energy in Brazil.
Tether's investments have been fruitful, with the company reporting a profit of one billion dollars in the first quarter of 2025. Yet, managing these astronomical profits effectively has proven to be a challenge.
Tether's reserves amount to around 149.3 billion dollars, giving it excess reserves of 5.6 billion dollars or around four percent. A significant portion of these reserves consists of US Treasury bonds, totalling 120 billion dollars.
Tether's expansion beyond the crypto sphere is evident. The company has made a 10% stake purchase in the football club Juventus Turin on the 24th of April. Furthermore, Tether's P2P messenger Keet and Hadron platform for issuing real-world assets have had modest success in the market.
Tether has also been making strategic partnerships. On the 7th of May, Tether brought USDT natively to the Kaia blockchain of LINE, a "high-performance layer 1 blockchain" popular for mini dapps, especially in Asia.
Regulatory challenges, however, have not been absent. Tether's dollar token XAUT reached a market capitalization of $770 million (and is backed by 7.7 tons of gold) on the 28th of April. However, Tether dollars are no longer allowed to be traded in the EU due to not meeting the EU's detailed requirements for stablecoin issuers.
Tether has not yet established any sustainable pillars alongside its core business. The company is, however, using its significant profits to diversify rapidly and expand into business areas beyond crypto.
In an effort to meet regulatory requirements, Tether's Hadron platform integrated Chainalysis on the 6th of May. The company also donated $100,000 to the BTCPay Server Foundation on the 8th of May.
As Tether continues to grow and evolve, it will be interesting to see how the company navigates the complex landscape of both the cryptocurrency market and global regulations.
