Tether Scales Back $20B Fundraising Amid Market Skepticism

• Tether lowers its $20B fundraising target to around $5B, citing market volatility and investor caution.

• 2025 profits drop 23% to $10B, but Tether stays profitable while expanding into AI, commodities, and energy.

• CEO Ardoino calls $20B a “maximum,” stressing fundraising is about credibility, not urgent cash needs.

Tether has dramatically scaled back its ambitious $20 billion fundraising target, signaling caution amid volatile crypto markets. The stablecoin issuer originally aimed to raise $15–20 billion through a private placement, seeking a staggering $500 billion valuation.

CEO Paolo Ardoino called the target a “misconception,” clarifying that it represented a maximum rather than a firm goal. Investor hesitation, combined with a $467 billion cryptocurrency market selloff, forced the company to reconsider its approach. Now, advisers explore a smaller raise of around $5 billion while Tether still eyes the same lofty valuation.

The plan was to raise funds by selling around 3% of its equity to strategic investors. The funds raised were to be used to expand in areas such as AI, commodities, and energy infrastructure. However, with dwindling trust in high-valued tech and cryptocurrency companies, the plan has been met with tempered enthusiasm. The $500 billion valuation is seen as overambitious, considering Tether relies on stable coin issuance.

Profit Pressures and Market Headwinds

Tether reported a 23% drop in net profit for 2025, down to $10 billion from $13 billion the previous year. This decline stems from accounting adjustments, rising interest rates, and lower yields on Treasury-backed reserves.

However, concerns over profitability persist, even after the increase in reserves to $193 billion, with $186 billion in USDT circulation. Analysts argue that raising capital in an environment of declining profits may not be favorable. Tether has been under scrutiny over transparency and regulatory compliance.

Tether recently was downgraded by S&P Global Ratings due to its exposure to assets such as Bitcoin, gold, corporate bonds, and secured loans. The company has been criticized over lack of disclosure of counterparty creditworthiness, leading to increased caution among investors. In addition, the cryptocurrency market has declined by over 40% since Bitcoin hit its all-time high in October 2025.

Ardoino maintains confidence in Tether’s fundamentals, emphasizing, “That number is not our goal. It’s our maximum…If we were selling zero, we would be very happy as well.” The fundraising appears as much about credibility and strategic partnerships as cash infusion. Tether explores alternative liquidity options, including tokenized stock and buybacks, to ease investor concerns.