Tether is pursuing talks with investors to raise between $15 billion and $20 billion for approximately 3% of its equity through a private placement, Bloomberg News reported on Sept. 23.
The deal could position the crypto firm among the world’s most valuable private companies, with a valuation of around $500 billion. This would place it alongside OpenAI and Elon Musk’s SpaceX in terms of private company valuations.
By comparison, publicly traded rival Circle was worth about $30 billion as of Sept. 23. One of the people familiar with the matter cautioned that the figures represent top-end targets, with eventual numbers potentially significantly lower.
According to sources not authorized to speak publicly, talks remain in the early stages, and details are subject to change. Cantor Fitzgerald is reportedly serving as the lead adviser on the potential deal.
Strategic expansion plans
Tether Strategic Adviser Bo Hines denied fundraising plans during a Seoul conference interview on Sept. 23, stating that the company has no plans to raise money.
The fundraising discussions coincide with Tether’s efforts to re-enter the US market under President Donald Trump’s pro-crypto policies.
The company recently unveiled plans for a US-regulated stablecoin and appointed Hines, a former White House crypto official, to lead American operations.
Tether has avoided the US market following regulatory clashes, including a 2021 settlement where the company paid $41 million to resolve allegations of misrepresenting its reserves.
The stablecoin issuer reported $4.9 billion in profit during the second quarter, with CEO Paolo Ardoino claiming a 99% profit margin. However, Tether’s financial disclosures do not meet the same reporting standards required of publicly traded companies.
Prospective investors have accessed a data room over recent weeks to evaluate participation in the fundraising, with sources expecting the deal to be completed by year-end. The transaction would involve new equity rather than the sale of existing investor stakes.
The potential valuation represents a remarkable achievement for the lightly regulated cryptocurrency sector.
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