Tether Pulls Back on $20B Fundraising Plans After Investor Pushback (Report)

Tether has pushed back fundraising talks to around $5B after investors backed away from a proposed $500B valuation.

Tether has reportedly scaled back its planned multi-billion dollar fundraising goal after facing opposition from investors.

According to a report from the Financial Times on February 4, the stablecoin issuer’s advisors are now exploring the possibility of raising at least $5 billion, down from the $15 billion to $20 billion floated during initial talks in 2025.

Lower Target Follows Rating Concerns

The initial range, first reported by Bloomberg in September 2025, was linked to a market capitalization of $500 billion, placing Tether among the most valuable private companies in the world. However, this number reportedly proved difficult to justify to a few potential investors.

In the words quoted by the FT, Paolo Ardoino, Tether’s CEO, said that the highest number has never been a firm goal. According to the official, the amount discussed was the highest price the company could consider selling. “If we were selling zero, we would be very happy again,” said Ardoino, noting that the company is profitable and does not need external capital immediately.

Tether is the issuer of USDT, the world’s largest dollar-pegged stablecoin, with approximately 185 billion in circulation. The firm made strong gains on the return of USDT-backed reserves, particularly US Treasuries. Ardoino said that Tether made an estimated $10 billion in revenue last year, a number that has been prominent in valuation discussions.

Despite those gains, some investors have taken a cautious approach, with the FT reporting that concerns center around how the $500 billion figure was calculated and whether it reflects realistic growth expectations in the current market environment.

However, fundraising discussions are in the early stages, and no decision has been made on the size or timing of any increase.

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Profit, Reserve, and Perpetual Doubt

Tether’s capital plans have met the backdrop of mixed feelings surrounding the stablecoin issuer. The firm has expanded beyond reserves such as cash in recent years, building large positions in Bitcoin and gold. Earlier this year, Ardoino confirmed that the company bought about $779 million worth of Bitcoin in the fourth quarter of 2025, raising its holdings to more than 96,000 BTC.

At the same time, the scrutiny of transparency is not over, especially considering that S&P Global Ratings assigned USDT its lowest score on the company’s stablecoin stability scale in November 2025, citing disclosure gaps and a high share of assets such as Bitcoin, gold, and secured loans. Ardoino has criticized the valuation publicly, saying that traditional frameworks fail to capture Tether’s business model.

The reduced fundraising target suggests that Tether is adjusting to the market’s response rather than moving forward on a stronger scale. Whether the company continues with small increases or pauses will likely depend on investor satiety and broader conditions in the crypto markets in the coming months.