Tether’s big fundraising plans have hit a snag, prompting the stablecoin issuer to sharply scale back how much capital it expects to raise.
People familiar with the talks say investor resistance to an eye‑watering $500 billion valuation has forced advisers to rethink the size of any deal — with the new target possibly shrinking to as little as $5 billion. That is a major retreat from discussions last year, when Tether was reportedly exploring a $15–20 billion raise.
CEO Paolo Ardoino told the Financial Times the $500 billion figure was misunderstood: it represented the ceiling at which Tether would consider selling shares, not a firm fundraising goal. He also said investor interest at that valuation had been strong, but that internal dynamics have slowed progress. In particular, some existing shareholders are reluctant to sell equity, complicating efforts to assemble a large round.
Shareholder sell‑offs have been a recurring headache. Previous reporting indicated Tether considered options such as share buybacks and even tokenizing company equity on‑chain to manage capital strategy and prevent any single investor’s divestment from derailing fundraising plans. Tether has previously blocked at least one proposed sale, calling an attempt to bypass formal processes “imprudent.”
Despite the fundraising uncertainty, Tether’s balance sheet looks healthy. The firm reported net profits north of $10 billion for 2025, and its flagship stablecoin USDT expanded to roughly $186 billion in circulation. By year‑end Tether reportedly held several billion dollars in excess reserves, with total assets comfortably exceeding liabilities — factors that have helped reassure markets about backing for its sizable stablecoin supply.
Tether is also diversifying its reserves and footprint. Filings and statements show the company bought about 27 metric tons of gold in the final quarter, and it has launched a new dollar‑pegged stablecoin, USA₮, tailored for the U.S. market.
Taken together, the moves suggest Tether is recalibrating its capital plans while doubling down on reserve diversification and U.S. expansion — even as shareholder dynamics and valuation debates force a more modest fundraising path than once envisioned.
Read more AI-generated news on: undefined/news
