FT: "Tether considering scaling back fundraising from $20bn to $5bn"

Tether is reportedly considering a plan to significantly reduce the size of its new fundraising from the level previously planned. The move is seen as being influenced by investor pushback over the company’s valuation.

According to the Financial Times (FT) on the 4th (local time), Tether CEO Paolo Ardoino said during recent discussions with investors that the amount of new capital to be raised could come in below the level initially floated.

The report said Tether’s advisers are examining the possibility of raising at least $5bn, instead of the $15bn–$20bn investment round discussed last year. This is said to be because some investors have taken a cautious stance, burdened by Tether’s $500bn valuation target.

Tether remains the leading player by market share in the global stablecoin market, but market views on its valuation methodology and growth prospects have been mixed. Analysts say the combination of a large fundraising effort and talk of a lofty valuation has led to friction in efforts to win over investors.

The Financial Times said the fundraising talks are still at an early stage and that the final amount to be raised has not been determined.