Tether Seeks $500 Billion Valuation, Aims to Join Top Private Firms

TLDR

• Tether is in discussions to raise between $15 billion and $20 billion.
• The company aims for a valuation of approximately $500 billion.
• If successful, Tether will rank among the world’s most valuable private firms.
• Tether intends to offer new equity instead of selling existing stakes.
• Cantor Fitzgerald is advising on the potential deal with a 5% stake in Tether.

Tether, the world’s largest stablecoin issuer, is in discussions to raise between $15 billion and $20 billion. According to a Bloomberg report, this funding would value the company at around $500 billion. If successful, Tether would rank among the world’s most valuable private firms, joining the likes of OpenAI and SpaceX.

Tether’s $500 Billion Valuation Plan

Tether has been in talks with investors to secure funding for approximately 3% of the company. The stablecoin issuer aims to reach a $500 billion valuation, which would make it one of the top private companies globally. The company is targeting between $15 billion and $20 billion in new capital, sources familiar with the discussions said.

When reached by Bloomberg, a representative for Tether did not provide a comment. The transaction, if completed, would involve new equity rather than existing investors selling their stakes. Cantor Fitzgerald, which holds a 5% stake in Tether, is reportedly advising on the deal. The firm’s stake could be worth $25 billion at a $500 billion valuation.

Crypto Company Targets $500 Billion Valuation

Tether, based in El Salvador, issues the USDT stablecoin, which has a supply of $172 billion. It also announced plans to launch a new USD-pegged stablecoin targeting the U.S. market. Despite rumors of raising funds, Tether CEO Bo Hines recently stated that the company “has no plans to raise money” at the moment.

Tether’s main competitor, Circle Internet Group, issues the USDC stablecoin. Circle has a market cap of $30 billion, significantly smaller than Tether’s anticipated valuation. Tether has long been considered one of the most profitable companies in the crypto space. In the second quarter of this year, Tether reported a net profit of $4.9 billion.

Tether’s potential $500 billion valuation will place it among the most valuable private firms globally.

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