Tether Holdings SA, the issuer of the world’s largest stablecoin USDT, is reportedly seeking to raise as much as $20 billion in a private share sale. This fundraising effort targets a staggering $500 billion valuation, positioning Tether among the most valuable private companies globally, comparable to giants like SpaceX and OpenAI. The company is in advanced discussions led by top-tier global investment banks. The raise would involve selling approximately 3-4% of equity, attracting interest from strategic investors such as SoftBank and Ark Invest.
This capital infusion aims to fuel Tether’s expansion into new ventures, including AI, commodity trading, energy, and media, while bolstering its core stablecoin operations. The fundraising comes amid internal efforts to maintain pricing discipline. Tether recently intervened to halt at least one existing shareholder from selling a stake – valued at around $1 billion – at a significant discount, implying a company valuation of only $280 billion. Management viewed such off-market sales as a threat to the ongoing raise, potentially undermining investor confidence.
In a statement, Tether emphasized that it would be “imprudent and reckless” for investors to bypass the official process. The company confirmed it received assurances that these unauthorized sales would not proceed, ensuring the targeted $500 billion valuation remains intact. Executives are exploring two primary liquidity mechanisms post-raise: share buybacks and equity tokenization. Share Buybacks: A traditional approach where the company repurchases its own shares, similar to strategies employed by Ripple and Revolut to provide interim liquidity without going public.
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