Profits Fall by a Quarter: Why Tether Abandoned Its $20 Billion Financing Plan
In the face of a cooling crypto market and investor skepticism, Tether, the world's largest stablecoin issuer, has significantly scaled back its ambitious fundraising plans. Initially targeting $15-20 billion, which would have valued the company at $500 billion, the firm is now considering raising only about $5 billion. CEO Paolo Ardoino downplayed the original target, calling it a "misunderstanding" and a maximum cap, not a goal, while emphasizing that Tether is highly profitable and doesn't urgently need the capital.
Despite the success of its USDT stablecoin, which has a market cap of approximately $185 billion, Tether faces persistent investor caution. Concerns revolve around its $500 billion valuation—comparable to major AI firms and SpaceX—ongoing regulatory scrutiny, and the lack of a full independent audit, relying instead on quarterly attestations. Ardoino defended the valuation, contrasting Tether's substantial profits with the losses of highly-valued AI companies.
While new U.S. stablecoin legislation and competitor Circle's IPO have boosted momentum, regulatory risks and Tether's controversial history remain hurdles. The company's profits fell by about a quarter in 2025, attributed to declining Bitcoin prices, though it gained $8-10 billion from its gold holdings. Tether's massive scale has made it a major player in U.S. Treasuries and gold markets, positioning it as a critical bridge between traditional finance and the volatile crypto world.
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