The CEO of Tether called the company's valuation of $515 billion underestimated.

If it were to go public now, Tether would be valued at $515 billion, making it the 19th most valuable public company in the world. This conclusion was reached by John Ma, co-founder and CEO of Artemis.

The expert relied on the capitalization of Circle in his calculations, which conducted an IPO and has been listed on the NYSE since June 5. Ma also used a multiplier based on the profit metrics of two competitors and growth forecasts.

Data: X.

“The valuation of Tether at $515 billion is a great number. Perhaps a bit understated, considering our current ( and growing ) treasury in bitcoins and gold, but I remain very humble,” commented the CEO of the USDT issuer, Paolo Ardoino.

The founder of Professional Capital Management, Anthony Pompliano, and the head of Strike, Jack Mallers, suggested that the value of Tether could exceed $1 trillion.

The CEO and co-founder of Gently, Samuel Spitz, called Ma’s calculations “stupid.” He noted that the current market value of Circle is largely based on the balance of supply and demand for shares, rather than on the fundamental indicators of the business.

The expert also questioned the size of the applied multiplier of 69.3. Many agreed with his opinion. CEO of Sunrise Investment Group Hannes Demske called Tether’s valuation of $75-80 billion more realistic. He pointed out that this would be about half the value of assets under management, similar to Circle. Opponents drew his attention to the different business models of competitors.

Tether is focusing on the Global South

Ardoino stated in a tweet that he is sincerely “happy about the new phase of the company’s growth.” In response to one of the comments, he confirmed that Tether “does not need to go public.”

Public status simplifies capital attraction for development. However, the issuer of USDT reported a net profit of $13 billion by the end of 2024. According to expert calculations, the indicator was $85.6 million per employee.

The company is actively diversifying its business, engaging in bitcoin mining, and investing in crypto projects, including enterprises with treasuries in the first cryptocurrency.

In the US, Tether faces a mismatch between USDT and the expected regulation of stablecoins. Ardoino and Circle co-founder Jeremy Allaire have differing views on the development of the regulatory environment for the segment in the country.

The head of Tether admitted that the company might launch a separate “stablecoin” for the United States.

At the same time, he confirmed that the main markets for USDT remain developing countries. The issuer serves 420 million users in these jurisdictions and aims to reach a client base of one billion.

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Recall that in the first quarter, Tether’s operating profit from traditional investments amounted to $1 billion.