Stablecoin powerhouse Tether is reportedly seeking to raise a monumental $15 billion to $20 billion through a private placement, a move that would solidify its position as one of the world’s most valuable private companies. According to Bloomberg, which cited sources familiar with the matter, this capital injection would be for about a 3% stake, valuing the company at a staggering $500 billion. This valuation places Tether in an elite tier, alongside tech innovators like OpenAI and SpaceX.
This massive fundraising effort comes at a pivotal time for the stablecoin industry. While the talks are still in the early stages and the final numbers could be lower, the sheer scale of the potential deal underscores Tether’s dominance. The company’s flagship stablecoin, USDT, boasts a market capitalization of approximately $172.8 billion, making it the undisputed leader in the market. To put that in perspective, its closest competitor, Circle’s USDC, has a market cap of around $74 billion.
Tether’s ability to command such a high valuation is backed by its robust financial performance. The company recently reported a net profit of $4.9 billion in the second quarter, demonstrating immense profitability. Its financial statements also show a strong balance sheet, with over $162.5 billion in reserves against $157.1 billion in liabilities. A significant portion of these reserves includes approximately $8.9 billion in Bitcoin, highlighting its strategic asset allocation. The investment bank Cantor Fitzgerald is acting as the lead adviser for the deal, with prospective investors already given access to a data room.
