Tether Seeks $500 Billion Valuation, Wants To Raise $20B

2 1 minute read

Tether Seeks 0 Billion Valuation, Wants To Raise B — Tether In Talks To Raise 20 Billion — But What Does That Mean for Bitcoin 1.jpg

Tether Holdings SA, the issuer of the world’s largest stablecoin, is reportedly in discussions with investors to secure up to $20 billion in new capital. This potential deal could catapult the company into the realm of the most valuable private enterprises globally. The talks suggest that Tether is aiming to raise between $15 billion and $20 billion in exchange for approximately a 3% stake through a private placement. This would imply a valuation close to $500 billion, placing the company in the same league as industry giants like SpaceX and OpenAI.

While the negotiations are still in the early stages and details may evolve, Cantor Fitzgerald is reportedly advising on the transaction. The focus is on raising new equity rather than existing shareholders selling their stakes. Tether’s expansion beyond stablecoin issuance has positioned it as a formidable reserve-backed financial entity. CEO Paolo Ardoino disclosed earlier this year that Tether holds over 100,000 BTC, valued at over $11 billion, alongside more than 50 tons of gold in its reserves. This sizable Bitcoin holding solidifies Tether’s connection to the leading digital asset and underscores its role as one of the largest corporate Bitcoin owners globally.

Moreover, Tether has diversified its offerings by minting its stablecoin on the Bitcoin Lightning Network and launching it on the RGB protocol, enabling native stablecoin issuance directly on Bitcoin. This strategic move highlights Tether’s commitment to Bitcoin as the foundation for global monetary transactions. The company has also generated substantial profits by investing its reserves in U.S. Treasuries and other cash-like instruments, accruing $4.9 billion in profit in the second quarter alone. Ardoino claims that Tether operates with an impressive 99% profit margin, showcasing the firm’s robust cash-generating capabilities.

With Tether holding a significant amount of BTC and moving towards issuing stablecoins directly on Bitcoin, a successful capital raise would further align its future with Bitcoin. This development would solidify Bitcoin as the cornerstone of one of the world’s most valuable private enterprises, reinforcing Tether’s position as a financial powerhouse in the digital asset ecosystem.