Tether has reportedly re-evaluated its ambitious fundraising plans, scaling back its target to approximately $5 billion after experiencing pushback from investors. Earlier, discussions had considered raising $15 billion to $20 billion.

Valuation Concerns

The original amount was tied to a valuation around $500 billion, but many investors found it challenging to substantiate this figure. In a statement referenced by the Financial Times, Paolo Ardoino, Tether’s CEO, clarified that the earlier cited valuation was never a strict target, rather a ceiling for discussion. He remarked, “If we were selling zero, we would be very happy as well,” emphasizing that the company remains financially secure without the immediate need for outside funds.

Tether issues USDT, which is the largest stablecoin pegged to the US dollar, with roughly $185 billion in circulation. The firm had enjoyed a robust year, generating about $10 billion in profit – a detail central to valuation debates.

Despite its profitability, some investors remain cautious, particularly regarding the justifications for the $500 billion valuation and its current market viability. Nonetheless, these fundraising conversations are still in their preliminary stages, and no definitive decisions about the timing or size of potential fundraising have been set, reflecting investor sentiment and market conditions moving forward.