![]()
Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure
Crypto giant Tether is reportedly encountering resistance in its latest fundraising efforts, prompting a significant rethink of how much capital it plans to raise
According to people familiar with the discussions, investor pushback over the company’s ambitious $500 billion valuation has led advisers to consider a much smaller funding round, potentially as low as $5 billion.
Shareholder Hesitation Slows Tether Fundraise
The revised target marks a sharp shift from earlier talks last year, when Tether was said to be exploring a raise of between $15 billion and $20 billion
Chief Executive Officer Paolo Ardoino pushed back on the notion that the company was aiming to raise funds at a $500 billion valuation, describing that figure as a misunderstanding
Related Reading: Crypto Market Structure Bill Nears Key Moment As CFTC Chair Signals Progress Within MonthsSpeaking to the Financial Times, Ardoino said the number represented the maximum valuation at which Tether would have been willing to sell shares, not a firm objective. Ardoino also noted that interest from potential investors at that valuation had been strong, but that progress has been slowed by internal considerations
In particular, some existing shareholders have been reluctant to sell equity, complicating efforts to structure a larger fundraising round and contributing to the decision by advisers to explore a more modest raise.
Concerns around shareholder sales have surfaced before. Last year, Bitcoinist reported that Tether was weighing several options to manage its capital strategy, including share buybacks and the potential tokenization of company shares on a blockchain once a fundraising deal is completed
At the time, those discussions were driven by worries that certain investors selling their stakes could undermine the company’s broader fundraising plans
Tether later confirmed it had blocked at least one shareholder from proceeding with plans to divest, calling it “imprudent” for any investor to attempt to sidestep formal processes overseen by leading global investment banks.
Profits And Reserves While Rolling Out USA₮
Despite the fundraising uncertainty, Tether’s financial position appears robust. The company reported net profits exceeding $10 billion for 2025, while the supply of its flagship stablecoin, USDT, expanded to approximately $186 billion in circulation
By year‑end, Tether reportedly held several billion dollars in excess reserves, with total assets comfortably exceeding liabilities. That financial cushion has helped ease concerns among investors about whether the company can adequately back such a large volume of stablecoins.
Related Reading: US Probes Crypto Exchanges For Suspected Sanctions Violations Linked To IranTether has also continued to diversify its reserves. Recent filings and public statements indicate that the firm purchased roughly 27 metric tons of gold in the final quarter of the year
At the same time, Tether is expanding its footprint in the United States. The company has officially launched a new dollar‑pegged stablecoin, called USA₮, designed specifically for the US market..
The total crypto market cap drop below the $2.5 trillion mark on the daily chart. Source: TOTAL on TradingView.comFeatured image from OpenArt, chart from TradingView.com
![]()
Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.
