Tether floats $5 billion raise after investor pushback on $500 billion valuation target: FT

Tether has scaled back its external capital fundraising efforts, now floating a $5 billion raise after investors balked at an initial proposed valuation of $500 billion, which would have placed it among the world's most valuable private firms. Earlier discussions targeted raising up to $20 billion for about 3% of the company. Tether CEO Paolo Ardoino clarified that the $20 billion figure was a maximum they were willing to sell, emphasizing the company is highly profitable with little need for capital. Potential investors have expressed caution regarding regulatory and operational risks, including scrutiny over illicit transaction volumes and reserve quality, despite Tether's strong profitability, which included over $10 billion in net profit in 2025 and holding $6.3 billion in excess reserves backed by assets like U.S. Treasurys. Talks are ongoing, and sentiment may improve with a crypto market rally.

(Source：The Block)