Tether has scaled back its fundraising ambitions from up to $20 billion to about $5 billion after investor pushback on a proposed $500 billion valuation.
Tether, issuer of the USDT stablecoin with over $185 billion in circulation, has reduced its planned capital raise to roughly $5 billion from an earlier ceiling of $15–20 billion after investors balked at a proposed $500 billion valuation. CEO Paolo Ardoino clarified that the larger range reflected a maximum equity sale rather than a target. Despite limited operational need, Tether pursued fundraising while reporting approximately $10 billion in annual profit, largely from interest on reserves. Investors cited valuation concerns, regulatory risks, and persistent questions about reserve transparency. The company remains highly profitable and influential, with growing investments in U.S. Treasuries and gold, though it has yet to conduct a full audit.