Crypto giant Tether is reportedly encountering resistance in its latest fundraising efforts, prompting a significant rethink of how much capital it plans to raise.
According to people familiar with the discussions, investor pushback over the company’s ambitious $500 billion valuation has led advisers to consider a much smaller funding round, potentially as low as $5 billion.
Shareholder Hesitation Slows Tether Fundraise
The revised target marks a sharp shift from earlier talks last year, when Tether was said to be exploring a raise of between $15 billion and $20 billion.
Chief Executive Officer Paolo Ardoino pushed back on the notion that the company was aiming to raise funds at a $500 billion valuation, describing that figure as a misunderstanding.
Speaking to the Financial Times, Ardoino said the number represented the maximum valuation at which Tether would have been willing to sell shares, not a firm objective. Ardoino also noted that interest from potential investors at that valuation had been strong, but that progress has been slowed by internal considerations.
In particular, some existing shareholders have been reluctant to sell equity, complicating efforts to structure a larger fundraising round and contributing to the decision by advisers to explore a more modest raise.
Concerns around shareholder sales have surfaced before. Last year, Bitcoinist reported that Tether was weighing several options to manage its capital strategy, including share buybacks and the potential tokenization of company shares on a blockchain once a fundraising deal is completed.
At the time, those discussions were driven by worries that certain investors selling their stakes could undermine the company’s broader fundraising plans.
Tether later confirmed it had blocked at least one shareholder from proceeding with plans to divest, calling it “imprudent” for any investor to attempt to sidestep formal processes overseen by leading global investment banks.
Profits And Reserves While Rolling Out USA₮
Despite the fundraising uncertainty, Tether’s financial position appears robust. The company reported net profits exceeding $10 billion for 2025, while the supply of its flagship stablecoin, USDT, expanded to approximately $186 billion in circulation.
By year‑end, Tether reportedly held several billion dollars in excess reserves, with total assets comfortably exceeding liabilities. That financial cushion has helped ease concerns among investors about whether the company can adequately back such a large volume of stablecoins.
Tether has also continued to diversify its reserves. Recent filings and public statements indicate that the firm purchased roughly 27 metric tons of gold in the final quarter of the year.
At the same time, Tether is expanding its footprint in the United States. The company has officially launched a new dollar‑pegged stablecoin, called USA₮, designed specifically for the US market..
Featured image from OpenArt, chart from TradingView.com
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