Stablecoin issuer Tether has so much cash that it's becoming a VC - PitchBook
Its fundamental business has faced some challenges over the years. In 2021, Tether came under fire for opacity around its reserve assets, including investing reserves in illiquid assets. In response, the company has begun publishing quarterly reports and said it’s since bolstered its reserves.
S&P Global Ratings downgraded to “weak” Tether’s ability to maintain its 1:1 USDT backing in late 2025, citing volatility in its bitcoin reserves.
Still, the company disclosed profits of more than $10 billion in 2025, with $6.3 billion in excess reserves and record US Treasury holdings of $141 billion.
“I know everyone is all hyped about AI, but I don’t know any AI company that made that much of a profit last year,” one crypto investor said, adding that “they just have so much money that they’ve turned into something like a massive holding company.”