The landscape of cryptocurrency continues to evolve, and Tether, a prominent player in this space, is navigating new challenges in its fundraising initiatives.
Recent reports suggest that Tether is reassessing its capital raising ambitions in light of investor feedback concerning its lofty expectation of a $500 billion valuation, leading to a potential adjustment in their fundraising target down to a much more conservative $5 billion.
Investor Confidence Wavers for Tether
This adjustment is a notable departure from earlier discussions in 2022, where Tether was exploring raising capital in the range of $15 billion to $20 billion.
CEO Paolo Ardoino has addressed the confusion surrounding the high valuation, considering the $500 billion figure more of a theoretical maximum rather than a defined target. He emphasized that while interest from potential investors has been substantial, internal dynamics have slowed capital raising efforts.
Ardoino reiterated his belief that some existing shareholders are hesitant to divest, posing challenges to orchestrating a larger funding round and paving the way for a more limited fundraising strategy.
This reluctance to sell isn’t unprecedented. Last year, various reports emerged indicating Tether’s exploration of diverse capital management strategies, including potential share buybacks and the idea of tokenizing equity on the blockchain post-fundraising.
Such strategies were rooted in the concern that shareholder divestments could jeopardize broader funding initiatives. Tether has even had to prevent at least one shareholder from selling off their holdings, labeling any attempt to bypass formal procedures as “unwise.”
Financial Strength Amid Uncertainty
Despite the challenges surrounding fundraising, Tether enjoys a solid financial foundation. The company recently announced it had achieved net profits of over $10 billion for 2025, and its flagship stablecoin, USDT, has seen its circulation surge to approximately $186 billion.
As of the close of the year, Tether reportedly possessed several billion dollars in surplus reserves, with its total assets significantly overshadowing liabilities. This robust financial standing alleviates investor apprehensions about the company’s capacity to support such a vast amount of stablecoins.
Tether has also made strides in diversifying its asset base. Recent disclosures reveal that the company acquired around 27 metric tons of gold in the latter part of the year.
Moreover, Tether is making significant advances in the U.S. market, introducing a new stablecoin pegged to the dollar, named USA₮, specifically targeted at American consumers and businesses.
Image sourced from OpenArt; chart from TradingView.com.
