Tether Reevaluates $5 Billion Fundraising Amid $10 Billion Profit

Tether Considers Reduced Fundraising After Profitable Year

Tether, the prominent stablecoin issuer, is reconsidering its initial plans to raise between $15 billion and $20 billion. This change comes after a highly profitable year, yielding $10 billion from USDT reserve returns, and feedback from investors regarding a proposed $500 billion valuation.

Investor Feedback Alters Fundraising Strategy

The Financial Times reports that potential investors expressed skepticism about the $500 billion valuation, prompting Tether to scale back its fundraising ambitions. Advisors now discuss a reduced round of approximately $5 billion, aligning more closely with investor sentiment and market dynamics.

CEO Remarks on Capital Requirements

CEO Paolo Ardoino clarified that the larger fundraising figure was not a necessity but a potential maximum. He emphasized Tether's strong financial standing, which negates the immediate need for external capital. The firm could opt against fundraising entirely due to its robust profit margins.

Profitability Supports Self-Sufficiency

In 2025, Tether achieved over $10 billion in net profits, largely from USDT reserve returns. Although slightly lower than the $13 billion profit in 2024, the company remains a key player in the digital asset industry, reducing pressure for additional funding.

Financial Reserves and Regulatory Concerns

By year-end 2025, Tether's reserves totaled approximately $193 billion, with significant holdings in U.S. Treasuries and gold. Despite these strengths, regulatory and transparency issues persist, causing some investor hesitation. Internal dynamics, including shareholder reluctance to sell, also influence the decision against a large capital raise.