Tether Expands Investment Portfolio With Stake In Juventus FC
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Juventus FC, one of Italy’s biggest football clubs, has a new investor from the crypto world. Tether, the company behind the $140 billion stablecoin USDT, has bought a small stake in the club, showing its interest in sports investments.
After the news broke, Juventus’ stock price went up by 2.5%, and its fan token (JUV) skyrocketed 180% before dropping slightly. Tether’s Chief Executive Officer, Paolo Ardoino, said the company wants to bring digital assets and new technology into the sports industry.
Tether’s Investment In Juventus Marks A New Era For Sports And Crypto Collaboration
Juventus has been controlled by the Agnelli family for a long time, with their investment firm, Exor, owning 64% of the club. Exor didn’t sell any shares to Tether in this deal.
The club has had financial struggles in recent years, raising nearly €900 million from shareholders to stay stable. It also reported a €200 million loss in the last financial year.
Meanwhile, Tether has been growing beyond just stablecoins. The company made $13 billion in profit last year and has been expanding into artificial intelligence, payments, and energy. Buying a stake in Juventus is part of its plan to diversify its investments.
Juventus is also trying to recover from a rough period. After dominating Serie A for years, the club was involved in an accounting scandal related to player transfers and salaries, which led to a ban from European competitions.
Right now, Juventus is fifth in Serie A and competing in the Champions League knockout stage against PSV Eindhoven. The sports world has been welcoming crypto companies more and more, with fan tokens, blockchain deals, and crypto sponsorships becoming common in football. Tether’s investment in Juventus is another sign of how digital asset companies are getting involved in mainstream sports.
Tether’s Growth And Dominance In The Crypto Market
Tether (also known as USDT or USD₮) is a type of cryptocurrency known as stablecoin. It was created in 2014 by Tether Limited Inc. and is designed to stay at a steady value, unlike other cryptocurrencies that go up and down a lot.
As of August 1, 2024, Tether reported having $118.4 billion in reserves, with $5.3 billion set aside as extra. In the second quarter of the year, the company made $1.3 billion in profit, adding up to $5.2 billion for the first half of 2024. Tether also said its net equity is $11.9 billion, and its stablecoin’s total market value is over $114 billion.
Even though Tether is the biggest stablecoin, some people question whether it really has all the money it claims to back up its currency.
When it comes to trading, Tether is the most-used cryptocurrency, making up 70% of all stablecoin transactions. Back in 2019, it even passed Bitcoin as the most traded crypto in the world. As of July 2024, over 350 million people use Tether.
