Stablecoin issuer Tether Holdings Ltd has further diversified its interest with a major investment in biotechnology startup, Blackrock Neurotech.Â
Tether Exploring Beyond Blockchain
According to a report from The Block, Tether invested a total of $200 million into Blackrock Neurotech to become the majority owner. The company has over a 12-year history of helping people with paralysis and other forms of neurological disorders.
Tether started as one of the pioneering stablecoin issuers and has grown to become the dominant player in the field. Today, USDT boasts a market cap of $110.525 billion with billions in daily trading volume highlighting its broad adoption.
With the injection into Blackrock Neurotech, Tether hopes to expand its influence beyond the confines of blockchain technology. Per the report, the investment was made through the firm’s newly spun Venture Capital outfit Tether Evo. Ultimately, the stablecoin issuer plans to help its new portfolio firm expand its product’s commercialization.
The dominant stablecoin issuer has also started investing in the Bitcoin mining sector to bolster its market presence. The mining push and Blackrock Neurotech investments mark a good use of the $2.9 billion in net profit it recorded in Q4 2023. With the mining, the company hopes to capitalize on the growing mainstream adoption of the asset.
New Normal For Crypto Firms
Besides the general crypto activity ranging from new token listings and general trading activities, crypto entities eye a more influential role as a venture capital outlet.
The payday can be enormous as showcased by firms like the bankrupt FTX Derivatives Exchange. Under Sam Bankman-Fried, the firm invested $500 million in Artificial Intelligence startup Anthropy. This investment turned out to be worth over $1.4 billion as of December 2023 when Anthropy was valued at $8 billion.
The trading platform later sold about $884 million worth of its shares to give up the majority stake. With Tether, its bet on Blackrock Neurotech might also turn out to be one of the biggest bids in its history.
