Expanding Beyond Cryptocurrencies
Tether, the company behind the second-largest stablecoin USDT, announced a $50 million investment in the sleep technology startup Eight Sleep. This is another step in diversifying its business beyond the cryptocurrency industry.
Previously, Tether has invested in projects related to artificial intelligence, machine learning, and longevity. The investment in Eight Sleep, which develops 'smart' mattresses and other sleep-enhancement solutions, continues this strategy.
Such expansion beyond cryptocurrencies is not accidental. Tether seeks to move away from the association with digital assets alone and position itself as a broader technology company. This is also driven by the reputational damage Tether has occasionally suffered due to allegations of insufficient reserves and market manipulation in the crypto space.
Prospects of the Sleep Tech Market
The investment in Eight Sleep reflects the growing interest in technologies that improve sleep quality. According to Research and Markets, the global smart sleep device market could reach $32 billion by 2027, growing at a CAGR of around 13%.
This is fueled by the increasing awareness of the importance of quality sleep for health and well-being. The COVID-19 pandemic has also boosted the demand for technological sleep solutions as people spent more time at home.
Tether's investment in Eight Sleep demonstrates that major cryptocurrency players are increasingly looking towards adjacent high-tech markets. Business diversification reduces risks and opens up new growth opportunities.