Matt Hougan, Chief Investment Officer of Bitwise, has made a bold prediction that Tether, the stablecoin issuer, could become the most profitable company ever, potentially outperforming oil giant Saudi Aramco. Hougan highlighted Tether's business model, which leverages high interest rates and continuous asset accumulation, as a key driver. If Tether reaches $3 trillion in assets—approximately 3% of the global money supply—it could generate revenue exceeding Aramco's $120 billion in 2024 profits.
Tether's growth metrics are staggering: it now boasts over 400 million users, with about 35 million new wallets added quarterly, particularly in emerging economies where stablecoins serve as a dollar alternative. The company holds $127 billion in U.S. Treasury securities, positioning it among the top non-sovereign investors globally, and owns more than 100,000 Bitcoin (worth around $11.4 billion). Despite a lean workforce of under 200 employees, Tether generated an estimated $13 billion in profit in 2024, underscoring operational efficiency.
Expansion beyond stablecoins includes significant investments in Bitcoin mining, telecommunications, data centers, energy infrastructure, and artificial intelligence. Hougan also contextualized the broader crypto market, noting Bitcoin's $2.3 trillion market cap still trails gold's $25 trillion, indicating substantial growth potential. Altcoins like Ethereum and Solana are targeting global payments and finance markets, which process $1.8 quadrillion annually, according to McKinsey.
Hougan advises investors to view crypto like venture capital, acknowledging risks but recognizing the potential for outsized returns as companies like Tether redefine industry scale.
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