Tether Eyes Massive $20 Billion Fundraising Round at $500 Billion Valuation
Stablecoin giant Tether and issuer of USDT explores historic private placement that would rank it among world's most valuable companies
Quick overview
- Tether Holdings is reportedly seeking to raise up to $20 billion in a financing round that could value the company at nearly $500 billion.
- The company aims to sell a 3% interest through a private placement, with Cantor Fitzgerald acting as the main consultant.
- Tether's USDT remains the leading dollar-backed stablecoin, holding a market cap of $172.8 billion, which is 56% of the total stablecoin market.
- The stablecoin market's growth is supported by regulatory changes and Tether's plans to launch a US-based stablecoin, USAT, to expand its presence in the US.
Bloomberg sources say that Tether Holdings, the company behind the world’s largest stablecoin USDT, is in talks for a financing round that may raise up to $20 billion and give the company a valuation of almost $500 billion.
The crypto powerhouse established in El Salvador wants to sell a 3% interest for between $15 billion and $20 billion through a private placement. Cantor Fitzgerald, an investment firm, is the main consultant on the deal. However, insiders warned that the final numbers could be much lower because talks are still in the early stages.
If the stated valuation is correct, Tether would become one of the most valuable private firms in the world. This would place it on pace with OpenAI, an AI company that has also been looking for capital at similar prices, according to previous reports.
Tether’s Unprecedented Profitability Drives Valuation
Even while it doesn’t get as much attention as big tech companies like OpenAI, Tether has quietly become one of the most lucrative companies in the world on a per-employee basis. The corporation made an amazing $4.9 billion in profit in the second quarter alone, increasing its total earnings for the year to $5.7 billion.
In a message on social media, Tether CEO Paolo Ardoino said that the company is “evaluating a raise from a selected group of high-profile key investors.” However, he did not give any more information about the possible investment round.
Bo Hines, the new CEO of Tether USAT, a US-focused subsidiary, said at a conference in Seoul that the business has no plans to raise further money right away. This shows how early these talks are.
USDT’s Market Dominance Amid Stablecoin Boom
According to CoinMarketCap data, Tether’s USDT is still the most popular dollar-backed stablecoin, with a market cap of $172.8 billion, or almost 56% of the whole $307.2 billion stablecoin market.
The stablecoin market has grown quickly because digital assets tied to existing currencies make it easy and cheap to send money and open up access to blockchain apps. Regulatory changes, including the recent passing of the GENIUS stablecoin bill in the United States, which intends to create clear rules for issuers, have added to this momentum.
Stablecoin Industry Valuations Soar
Tether isn’t the only company with crazy high valuations. Earlier this year, Circle Internet Group, which issues the USDC stablecoin, went public and saw its stock price rise more than 160% on its first day of trading, giving it a value of more than $18 billion. Since then, Circle’s market worth has gone up to around $33 billion.
The crypto industry’s friendly regulatory environment under President Trump has helped companies like Tether even more. To help with its ambitions to grow in the US, the company hired Bo Hines, a former White House crypto policy executive, as a strategic consultant in August.
Tether recently announced intentions to introduce USAT, a US-based stablecoin made just for American people. This is part of the company’s expansion strategy and will allow it to take advantage of the increasing digital asset market in the US.
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