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Tether targets up to $20B in private fundraising deal
Tether Holdings SA, the issuer of the world’s largest stablecoin, is exploring one of the largest private funding rounds in crypto history.
The El Salvador-based firm is in early talks with investors to raise between $15 billion and $20 billion in exchange for a roughly 3% stake, according to Bloomberg. If successful, the raise could value Tether at about $500 billion, placing it alongside tech giants such as OpenAI and SpaceX.
Key takeaways
- Tether is seeking up to $20B via private placement, targeting a $500B valuation.
- USDT is the world’s largest stablecoin with a $172B market cap, far ahead of Circle’s USDC at $74B.
- The firm reported $4.9B profit in Q2 and claims a 99% margin, fueled by U.S. Treasuries.
- Plans include expansion into AI, commodities, energy, and U.S.-regulated stablecoins.
Tether’s strategy and market position
The deal would involve new equity rather than secondary sales, with Cantor Fitzgerald serving as the lead adviser. Chief Executive Paolo Ardoino said Tether is pursuing high-profile investors to “maximize the scale” of its strategy across stablecoins, AI, commodities, energy, communications, and media.
Tether’s flagship token, USDT, is pegged to the U.S. dollar and dominates the market with a $172 billion valuation, compared with Circle’s USDC at $74 billion.
The company has made substantial profits by investing its reserves in short-term U.S. Treasuries. In the second quarter alone, Tether posted $4.9 billion in profit, claiming an eye-catching 99% profit margin. While these figures are not subject to the disclosure standards of public companies, they underscore the firm’s ability to leverage rising interest rates for outsized gains.
Regulatory and political tailwinds
Tether has been laying groundwork for a U.S. comeback, capitalizing on President Donald Trump’s pro-crypto stance. It recently announced plans for a U.S.-regulated stablecoin and appointed Bo Hines, a former White House crypto official, to spearhead the effort. Still, risks remain, as falling U.S. interest rates could reduce its windfall earnings, while competition from rivals intensifies.
Conclusion
If Tether’s ambitious fundraising effort succeeds, it would mark an extraordinary leap for a lightly regulated crypto firm, cementing its dominance in digital finance. Investors and regulators alike will watch closely as the company attempts to balance expansion, scrutiny, and sustainability.
Earlier, we reported that Tether boosts XAUT stability with $100M gold mining deal.
This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.
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