Tether says 'misconception' over fundraising plans amid reports of investor pushback
FILE PHOTO: Paolo Ardoino, CEO of Tether, speaks during the launch of Adopting Bitcoin – A Lightning Summit in El Salvador, in San Salvador, El Salvador November 7, 2023. REUTERS/Jose Cabezas/File Photo
Feb 4 : Tether's CEO said on Wednesday there had been "misconception" about the crypto group's fundraising plans after the Financial Times reported it had scaled back its ambitions following investor pushback over a proposed $500 billion valuation.
The newspaper, citing people familiar with the matter, said Tether's advisers had floated raising as little as $5 billion, following initial reports last year that it was seeking $15 billion to $20 billion.
CEO Paolo Ardoino told Reuters that the initial range was discussed "as a maximum in hypothetical scenarios, not as a target and not as a capital raising plan".
He added that there was "significant interest" in Tether at a $500-billion valuation and that any discussions were guided by "ethos and long-term alignment, not by urgency or by the pursuit of the largest possible raise".
El Salvador-based Tether is the issuer of the world's most widely used USDT stablecoin, a digital dollar with $187 billion worth of tokens in circulation.
Bloomberg News reported in September that Tether was seeking between $15 billion and $20 billion for about a 3 per cent stake through a private placement that could value it at as much as $500 billion.
Last month, Ardoino told Reuters that Tether's 2026 profit was expected to exceed the $10 billion it was estimated to have earned in 2025, and possibly the $13.7 billion earned in 2024.
Tether has strengthened its position in the stablecoin market by offering cryptocurrencies pegged to traditional currencies to reduce volatility and ease transfers between digital assets.
