Tether cuts fundraising target after investor concerns

Tether cut its fundraising target from up to $20B to about $5B after investor concerns over a $500B valuation. The company remains profitable and a stablecoin market leader.

Tether, the issuer of the USDT stablecoin, has scaled back its fundraising ambitions following investor concerns over a previously discussed $500 billion valuation. Initially, Tether aimed to raise between $15 billion and $20 billion, but skepticism regarding the high valuation, regulatory uncertainties, and questions about its capital structure led to a strategic shift. Advisors are now considering a much smaller fundraising round, potentially as low as $5 billion. Tether’s management clarified that the larger figures were misconceptions, emphasizing the company’s strong profitability and no immediate need to sell equity. Last year, Tether reported profits of around $10 billion, mainly from asset returns, and expects continued strong financial performance. Despite reducing its fundraising plans, Tether remains a dominant force in the stablecoin market, with approximately $185 billion USDT in circulation.