Tether narrows down the $20 billion fundraising plan after investor reactions

Tether is believed to have significantly scaled back its multi-billion dollar fundraising plans after facing caution from investors.

According to the Financial Times on February 4th, the advisors of this stablecoin issuer are now considering a minimum raise of $5 billion, much lower than the $15–20 billion initially discussed in early 2025.

Lower Target Amid Valuation Concerns

The initial valuation estimate, first mentioned by Bloomberg in September 2025, was around $500 billion, which could place Tether among the most valuable private companies in the world. However, this figure is considered difficult to convince many potential investors.

In a statement cited by FT, Tether CEO Paolo Ardoino said that a higher valuation has never been an official goal. He explained that it is only the maximum limit the company might consider selling at. Ardoino emphasized that Tether is profitable and does not have an urgent need to raise external capital. “Even if we don’t sell anything, we are completely satisfied,” he said.

Tether is the issuer of USDT, the largest USD-pegged stablecoin in the world, with approximately $185 billion in circulation. The company reports substantial profits from yields on its reserve portfolio backing USDT, mainly US government bonds. Ardoino stated that Tether earned about $10 billion in profit last year — a figure often mentioned in valuation discussions.

However, some investors remain cautious. According to FT, concerns revolve around how the $500 billion valuation is calculated and whether this figure reflects actual growth expectations in the current market environment.

Currently, fundraising discussions are still in very early stages, with no final decision on the scale or timing of the raise.

Expanding Investments but Transparency Pressures Remain

Tether’s funding plans are taking place amid mixed market sentiment—both optimistic and skeptical—toward the company. In recent years, Tether has expanded its reserve holdings beyond cash equivalents, accumulating large amounts of Bitcoin and gold. Previously, Ardoino confirmed that the company purchased approximately $779 million worth of Bitcoin in Q4 2025, bringing total holdings to over 96,000 BTC.

Meanwhile, debates over transparency continue. In November 2025, S&P Global Ratings rated USDT at the lowest level on the stablecoin stability scale, citing gaps in disclosures and a higher proportion of assets in categories like Bitcoin, gold, and secured loans. Ardoino publicly criticized this rating, arguing that traditional analysis frameworks do not accurately reflect Tether’s business model.

The decision to lower the fundraising target indicates that Tether is adjusting based on market feedback rather than pursuing an overly ambitious valuation. Whether to proceed with a smaller funding round or to postpone entirely will depend on investor appetite and overall market conditions in the coming months.