Tether scaled back funding talks to about $5 billion after investors rejected a proposed $500 billion valuation.
Tether reportedly scaled back its planned multibillion-dollar fundraising goal after facing resistance from investors.
According to a Feb. 4 Financial Times report, advisers to the stablecoin issuer are currently considering the possibility of raising at least $5 billion, up from the $15 billion to $20 billion figure floated in initial talks in 2025.
Target revised downward due to valuation concerns
The original range, first reported by Bloomberg in September 2025, refers to a valuation of approximately $500 billion, making Tether one of the most valuable privately held companies in the world. However, this figure reportedly proved difficult to justify for several prospective investors.
In comments cited by the FT, Tether CEO Paolo Ardoino said higher numbers were by no means a firm goal. The executive said the amount discussed was just the upper limit of what the company would consider selling. “If we had zero sales, we’d be very happy, too,” Ardoino said, noting that the company is profitable and doesn’t urgently need outside capital.
Tether is the issuer of USDT, the world’s largest dollar-pegged stablecoin, with approximately $185 billion in circulation. The company has generated high profits primarily from the proceeds of its USDT-backed reserves, which are backed by US Treasuries. Ardoino said Tether made about $10 billion in profits last year, a figure that figures prominently in discussions about valuation.
Despite this profitability, some investors are cautious, with concerns focused on how the $500 billion valuation was calculated and whether it reflects realistic growth expectations in the current market environment, as reported by the FT.
Nevertheless, financing negotiations are still in the early stages, and the size and timing of the financing has not yet been determined.
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Profitability, reserves, and persistent skepticism
Tether’s capital plans come against a backdrop of mixed sentiment surrounding stablecoin issuers. The company has expanded beyond reserves like cash in recent years, building large positions in Bitcoin and gold. Earlier this year, Ardoino confirmed that the company purchased approximately $779 million worth of Bitcoin in the fourth quarter of 2025, bringing its holdings to over 96,000 BTC.
At the same time, scrutiny over transparency continues, especially considering that S&P Global Ratings gave USDT the lowest score on the agency’s Stablecoin Stability Scale in November 2025, citing disclosure gaps and a high proportion of assets such as Bitcoin, gold, and secured loans. Mr. Ardoino publicly criticized the rating, arguing that traditional frameworks do not capture Tether’s business model.
The lower funding target suggests that Tether is adapting to market feedback rather than pursuing an aggressive valuation. Whether the company moves forward with a small increase or suspends it entirely will likely depend on investor appetite and broader crypto market conditions in the coming months.
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