Tether Fundraising Target Cut to $5B After Valuation Concerns

Tether Fundraising Faces Scrutiny Over Valuation and Dilution Risks

Tether fundraising target was officially scaled down after investors pushed back against reports of a massive equity raise. The company's CEO Paolo Ardoino recently dismissed claims that the platform was seeking $15-20 billion at a valuation near $500 billion, calling it a “misconception.”

Instead, the firm is now considering a much smaller fundraising round of around $5 billion, signaling a more realistic approach amid investor scrutiny. 

Source: Financial Times

Ardoino clarified that the $15-20 billion figure was never a fixed goal. It only represented the maximum equity Tether might sell under ideal conditions. He stressed that the firm is highly profitable and does not urgently need external capital. 

Why Investors Backed-Off

Investors were hesitant because the company was being valued at $500B, which many felt was too high or unrealistic, making them worried about limited upside or higher risk, even one with massive scale.

While USDT circulation stands near $185–186 billion, traditional valuation models still resist placing stablecoin firms as high-growth tech companies. 

As a result, advisers such as Cantor Fitzgerald are now exploring a more modest Tether Fundraising plan that limits dilution and aligns better with market expectations.

Why The Stablecoin Giant Does Not Need Emergency Funding 

The company’s confidence is backed by the recent-most strong financial performance. Its Q4 2025 attestation reported nearly $10B in annual profits, (slightly low from 2024’s $13B) largely driven by yields from the U.S. Treasury holdings, which now total around $141B.

Source: Official Attestation Report

The company also reported $6.3B in excess reserves, helping strengthen credibility amid long-standing concerns over reserve transparency. While the platform behind still does not publish full audits, these disclosures have eased some investors and regulatory concerns. 

Beyond Fundraising: Expansion Into Bitcoin Infrastructure 

Alongside its funding activities, Tether continues expanding beyond the stablecoin market. The firm recently launched MiningOS, an open-source operating system for Bitcoin mining designed to support everything from small rigs to large-scale mining farms.

This move follows earlier investments, including a 40% stake in a Bitcoin mining company in Uruguay, and reflects the company’s goal of building a vertically integrated cryptocurrency infrastructure business.

In the End

The revised Tether Fundraising strategy underscores a pragmatic shift rather than weakness. With strong profits, dominant USDT market share, and expanding operations, the USDT issuer appears comfortable prioritizing control and sustainability over aggressive valuations.