Tether Seeks $20B for 3% Stake, Valued at $500B
Tether is raising $15–20 billion through a 3% equity sale, valuing the issuer of the USDT stablecoin at about $500 billion. Advised by Cantor Fitzgerald, the round is in early stages with data‐room access open to investors and aims to close by year‐end. In Q2, Tether posted $4.9 billion in profits and profit margins near 99%. Demand for the stablecoin is surging amid market volatility. As a private company, Tether plans to bolster reserves, transparency, and governance to reassure institutional investors. It is also prepping a U.S. re‐entry with the USA₮ launch and the hiring of former White House crypto official Bo Hines ahead of the GENIUS Act. With over $120 billion in USDT circulation, this fundraise could reinforce Tether’s market dominance, draw tighter regulatory scrutiny on reserve composition and systemic risk, and accelerate global institutional adoption of stablecoins.
Neutral
In the short term, Tether’s capital raise and governance improvements are unlikely to move USDT’s $1 peg, keeping its price stable. Traders may see marginal impacts on funding liquidity. Over the long term, stronger reserves and transparency could reinforce confidence in USDT, cementing its market dominance and potentially increasing stablecoin adoption. Regulatory scrutiny might introduce periodic volatility in liquidity flows but is unlikely to unpeg USDT. Overall, the news is neutral for USDT price.