Tether scales back $20 billion funding ambitions after investor resistance: FT

Tether has significantly scaled back its ambition to raise up to $20 billion in fresh capital following resistance from potential investors regarding its proposed valuation, which could have ranked it among the world's most valuable private companies, potentially at $500 billion. Advisers are now discussing a smaller raise closer to $5 billion. CEO Paolo Ardoino clarified that the larger figures were a ceiling, not a target, emphasizing that the company is already highly profitable, generating about $10 billion in profit last year from interest on its USDT backing assets. Despite its profitability, investors expressed concerns over the high valuation, regulatory risks, and ongoing scrutiny regarding Tether's reserve transparency, particularly after S&P Global downgraded its reserve assessment due to increased exposure to Bitcoin and gold.

(Source：CoinDesk)