Tether Seeks to Raise Up to 20 Billion Dollars Based on a 500 Billion Dollar Valuation

Stablecoin issuer Tether is seeking to raise funding of up to 20 billion dollars based on a 500 billion dollar valuation.

On the 23rd (local time), Bloomberg reported that Tether is discussing selling about 3% of its total equity to private investors. If the deal is completed, Tether would join the ranks of the world's most valuable private companies alongside OpenAI and SpaceX. By contrast, rival publicly listed company Circle was valued at roughly 30 billion dollars as of the same day. However, observers note that the actual size could be significantly lower since the talks are at an early stage. Cantor Fitzgerald is reported to have participated as a major adviser in the deal.

The fundraising talks come as Tether looks to re-enter the U.S. market amid the Donald Trump administration's pro-crypto stance. The company recently announced plans for a new stablecoin to be issued under U.S. regulation and appointed Bo Haines, a former White House crypto official, as head of U.S. operations.

Meanwhile, strategic adviser Bo Haines rebutted in a conference interview in Seoul the same day, saying, "Tether has no fundraising plans." However, it was reported that some potential investors accessed a data room in recent weeks to review participation, and completion of a deal within the year has been mentioned as possible.

Tether paid a 41 million dollar fine in 2021 over allegations of false reserve disclosures and had kept its distance from the U.S. market, but it reported 4.9 billion dollars in net profit in the second quarter of this year and claimed a 99% return. However, Tether's financial disclosures have been criticized for lacking the transparency of publicly listed companies.