\n
<\/p>\n
Tether has reportedly scaled back its planned multibillion-dollar fundraising target after facing resistance from investors.<\/p>\n
According to a report from the Financial Times on February 4, advisers for the stablecoin issuer are now examining the possibility of raising at least $5 billion, down from the $15 billion to $20 billion figure circulated during early talks in 2025.<\/p>\n
The original range, first reported by Bloomberg in September 2025, was linked<\/a> to a valuation of roughly $500 billion, placing Tether among the world\u2019s most valuable private companies. However, the number has reportedly proven difficult to justify for several prospective investors.<\/p>\n In comments cited<\/a> by the FT, Paolo Ardoino, Tether\u2019s chief executive, said the higher figure was never a firm target. According to the executive, the amount discussed was only the maximum the company would consider selling. “If we were selling zero, we would be very happy as well,” Ardoino said, noting that the firm is profitable and does not urgently need external capital.<\/p>\n Tether is the issuer of USDT, the world\u2019s largest dollar-pegged stablecoin, with about $185 billion in circulation. The company has generated strong earnings from returns on reserves backing USDT, mainly U.S. Treasuries. Ardoino said Tether made around $10 billion in profit last year, a figure that has featured prominently in valuation discussions.<\/p>\n Despite that profitability, some investors have taken a cautious stance, with the FT reporting that concerns centered on how the $500 billion valuation was calculated and whether it reflects realistic growth expectations in the current market environment.<\/p>\n Nonetheless, fundraising talks are still in the early stages, and no decision has been made on the size or timing of any raise.<\/p>\n Tether\u2019s capital plans have come against a backdrop of mixed sentiment around the stablecoin issuer. The firm has expanded beyond cash-like reserves in recent years, building large positions in Bitcoin and gold. Earlier in the year, Ardoino confirmed that the company bought<\/a> about $779 million worth of Bitcoin in the fourth quarter of 2025, lifting its holdings to more than 96,000 BTC.<\/p>\n At the same time, scrutiny around transparency has not faded, especially considering that S&P Global Ratings assigned USDT its lowest score on the agency\u2019s stablecoin stability scale in November 2025, citing gaps in disclosure and a higher share of assets such as Bitcoin, gold, and secured loans. Ardoino publicly criticized<\/a> the rating, arguing that traditional frameworks fail to capture Tether\u2019s business model.<\/p>\n The reduced fundraising target suggests Tether is adjusting to market feedback rather than pressing ahead with an aggressive valuation. Whether the company proceeds with a smaller raise or pauses altogether will likely depend on investor appetite and broader conditions in crypto markets over the coming months.<\/p>\n The post Tether Pulls Back on $20B Fundraising Plans After Investor Pushback (Report)<\/a> appeared first on CryptoPotato<\/a>.<\/p>\n\nProfitability, Reserves, and Lingering Skepticism<\/h2>\n
Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Tether has reportedly scaled back its planned multibillion-dollar fundraising target after facing resistance from investors. According to a…\n","protected":false},"author":2,"featured_media":10082,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"class_list":["post-40842","post","type-post","status-publish","format-standard","has-post-thumbnail","category-crypto","cs-entry","cs-video-wrap"],"_links":{"self":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts\/40842","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=40842"}],"version-history":[{"count":0,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts\/40842\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/media\/10082"}],"wp:attachment":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=40842"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=40842"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=40842"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}