Tether CEO Says $20B Funding Target Was A 'Misconception' After Reality Check From Investors: Report

According to a report by the Financial Times, advisers involved in Tether’s fund raise discussions floated a much smaller raise of around $5 billion.

• CEO Paolo Ardoino said the reluctance stemmed from insiders not wanting to reduce their stake in the company.
• He also noted that Tether remains highly profitable and under no pressure to raise external capital. 
• Early fundraising expectations of between $15 billion and $20 billion would have ranked Tether alongside the world’s most valuable private companies such as SpaceX and OpenAI.

Tether (USDT) CEO Paolo Ardoino reportedly backtracked on the company’s goal to raise $20 billion at a $500 billion valuation amid reluctance from investors. 

Issuer of the world largest stablecoin USDT had been rumoured to be in the process of raising between $15 billion to $20 billion, that would rank the company among the most valuable private companies worth as much as Elon Musk’s SpaceX or Sam Altman-led OpenAI. In September last year, Ardoino partially confirmed rumours stating that it’s looking to raise funds from a “selected group of high-profile key investors” in a post on X. 

However, investor appetite appears to have fallen short of those early expectations. Advisers involved in the discussions floated a much smaller raise of around $5 billion, according to a Financial Times report. In a follow-up interview, Ardoino described the widely cited $15 billion to $20 billion target as a “misconception.”

“The number is not our goal. It’s our maximum we are ready to sell. If we were selling zero, we would be very happy still.” – Paolo Ardoino, Founder and CEO, Tether

Fundraising Expectations Reset

According to the report, Ardoino highlighted that Tether remains highly profitable and under no pressure to raise external capital. He said the company has received “a lot of interest” even at a $500 billion valuation, adding that the only reason the process has been held back is because insiders have shown little interest in reducing their stakes.

Tether’s fund raising has been closely watched across the crypto industry, with many seeing it as positioning play to bolster the company’s credibility and institutional ties rather than a necessity for funding. In the past, the stablecoin issuer has faced controversy around the lack of transparency when it comes to its reserves. 

Crypto Slump Sucks Liquidity From Tether

His comments come as demand for Tether’s USDT has slowed down amid the current crypto market slump. CoinMarketCap data showed Tether’s market cap has declined from over $187 billion to around $185 billion over the past month, signaling slower growth in stablecoin liquidity. Simply put, investors are converting back to fiat to gain exposure elsewhere.

The drop came as Bitcoin (BTC) fell to November 2024 lows in January, and continued to slide this month. Bitcoin’s price recovered to around $76,000 on Wednesday morning after falling to $73,000 levels earlier in the session, still down 3% in the last 24 hours. On Stocktwits, retail sentiment around the apex cryptocurrency fell to ‘extremely bearish’ territory from the ‘bearish’ zone over the past day, with message volumes at ‘extremely high’ levels. 

Meanwhile, retail sentiment around USDT fell to ‘bearish’ from ‘neutral’ over the past day with chatter steady at ‘normal’ levels. 

Profitability, Valuation, And Investor Scrutiny

Ardoino said the company had shown prospective investors “the depth” of its tools to collaborate with various law enforcement agencies. He defended the company’s valuation ambitions, arguing that Tether’s profitability is comparable to the big tech firms. 

“The AI companies are making the same amount of profits we’re making, except with a minus sign in the front,” he said. “If you believe that some AI company is worth $800bn, with a huge minus in front, be my guest.”

The report said people familiar with the discussions said that talks are ongoing and terms could change, particularly if sentiment in the broader crypto market improves.

Tether’s profits declined by roughly a quarter in 2025 compared to the previous year, which Ardoino attributed to Bitcoin’s price taking a dive. He added that gains on the company’s gold holdings generated approximately $8 billion to $10 billion following the precious metal’s rally.

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