The stablecoin issuer Tether is reportedly exploring a massive private funding round, aiming to raise between $15 and $20 billion for a stake of approximately 3%, pushing the company valuation close to $500 billion.
Key Highlights
- Valuation ambitions & stake offer: Sources indicate that Tether is in early-stage negotiations with high-profile investors. By selling about 3% of its equity, the firm hopes to reach a $500B valuation.
- Advisory & structure: Cantor Fitzgerald is reportedly serving as the lead adviser for this private placement.
- Financial strength: Tether’s USDT stablecoin has a market capitalization of around $170-175 billion, and the company has generated substantial profits from interest earned on its reserve assets.
- Strategic context: A $500B valuation would place Tether among the most valuable private firms globally, in league with OpenAI, SpaceX, and other high-value tech companies.
Implications & Risks
- Capital for growth & diversification
If successful, the raise would provide Tether with substantial capital to expand operations, invest in new ventures (such as AI, commodity trading, or media) or enhance its infrastructure. Some reports mention that the pool of funds may back expansions beyond just stablecoin operations. - Regulatory scrutiny
Tether has faced regulatory pressure before, particularly around transparency and reserve backing. A high-profile capital raise will likely draw even more attention from regulators and markets. - Valuation sensitivity
The final valuation and amount raised might shift depending on investor demand, due diligence outcomes, and macroeconomic conditions. The figures currently cited are preliminary. - Market signaling
Such a move signals confidence in stablecoin infrastructure and could encourage more institutional capital flows into the broader crypto sector.
