Tether’s $515B valuation positions it ahead of Coca-Cola, backed by strong profits and growing Bitcoin and gold reserves.
Tether moved $3.9B in Bitcoin to fund Twenty One Capital, signaling a deep investment in Bitcoin-native financial infrastructure.
Analysts project $7.4B in 2025 EBITDA for Tether as USDT supply grows and yield from Treasuries remains strong at a 4.2% Fed rate.
Tether has drawn major attention following reports that its valuation now stands at a stunning $515 billion. Paolo Ardoino, CEO of Tether, acknowledged this milestone on X, calling it “a beautiful number.” He noted it might even be a conservative estimate given the company's Bitcoin and gold holdings. Industry watchers suggest this valuation would place Tether as the 19th largest global company—surpassing Costco and Coca-Cola. This projection also ignites discussion about the company’s profitability, treasury strategy, and potential IPO trajectory.
Bold Treasury Moves and Profit Surge
Tether claims $13 billion in net profits for 2024. Around $7 billion came from yield-generating assets like Treasuries and Repos. The remaining $5 billion reportedly stemmed from unrealized gains in Bitcoin and gold, which do not factor into EBITDA. Jon Ma, a prominent market analyst, estimates Tether could generate $7.4 billion in EBITDA in 2025. His model assumes Tether will grow the USDT supply to around $170 billion and maintain exposure to high-yield assets amid a 4.2% Fed Funds Rate.
Moreover, Ma uses Circle's 69.3x EBITDA multiple to reach the bold $515 billion valuation. While he admits the multiple is unlikely to sustain, the point remains clear—Tether's growth and profitability are accelerating faster than expected.
Strategic Bitcoin Deployment via Twenty One Capital
Additionally, Tether has moved 37,229.69 BTC—worth nearly $3.9 billion—to wallets linked with the new Bitcoin-native platform, Twenty One Capital. Ardoino confirmed two separate transactions on June 3: one transferring 10,500 BTC ($1.1 billion) and another sending 917 BTC ($96 million).
These transfers support the platform’s pre-funding round, which includes SoftBank’s strategic investment. A day earlier, Tether also moved 14,000 BTC, Bitfinex added 7,000 BTC, and an additional 4,812.22 BTC was allocated to an equity raise. Consequently, Twenty One Capital now stands as the third-largest corporate Bitcoin holder, trailing only behind Strategy and MARA Holdings.
Outlook on Bitcoin-Native Financial Infrastructure
Twenty One Capital plans to revolutionize capital markets by building on Bitcoin rails. Its offerings will include lending, custody, and asset issuance. The firm aims to go public through a SPAC merger with Cantor Fitzgerald’s Cantor Equity Partners, securing a $3.6 billion valuation.
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