Why Tether May Raise Just $5bn-or Nothing-After $10bn Profit Year

Tether may scale its fundraise to $5bn or less after investor pushback, despite earning about $10bn from USDT reserve returns.

Tether is reassessing its fundraising plans after a year of strong profitability and investor resistance to a proposed valuation.

The stablecoin issuer had explored raising between $15 billion and $20 billion. However, discussions have now shifted toward a much smaller round or no fundraising at all.

Investor Pushback Reshapes Fundraising Plans

According to the Financial Times, Tether faced investor pushback over a suggested $500 billion valuation.

Several potential backers questioned whether such a figure was justified for a stablecoin-focused firm.

The valuation would have placed Tether among the most valuable private companies globally.

It would have ranked alongside firms such as SpaceX and ByteDance.

Advisers are now discussing a possible raise of about $5 billion. Sources said this amount better reflects investor appetite and current market conditions.

CEO Signals No Urgent Need for New Capital

CEO Paolo Ardoino said the larger fundraising figure discussed earlier was not a fixed target.

He explained that it represented the maximum amount of equity Tether was prepared to sell, not a required capital goal.

Ardoino added that Tether would be comfortable choosing not to raise capital at all. He said the company’s financial position allows it to operate without relying on outside funding.

The firm reported about $10 billion in profit last year. Most of the income came from returns on reserves backing the USDT stablecoin.

Strong Profits Support Independent Strategy

Tether reported net profits of more than $10 billion in 2025. Most of this income came from returns on reserves backing the USDT stablecoin.

The profit marked a decline from the $13 billion reported in 2024. The decrease was linked to Bitcoin price movements and changes in reserve allocation.

Despite the drop, Tether remained one of the most profitable firms in the digital asset sector. The earnings reduced pressure to raise funds.

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Balance Sheet Strength and Ongoing Concerns

By the end of 2025, Tether reported total reserves of about $193 billion. U.S. Treasury exposure exceeded $141 billion through direct and indirect holdings.

The company also reported excess reserves of $6.3 billion. These funds act as a liquidity buffer during market stress.

Gold holdings reached about $17.4 billion, equal to roughly 140 tons. However, some investors remain cautious due to regulatory and transparency concerns.

Questions around reserve disclosures and oversight persist. While Tether has increased compliance efforts, scrutiny from regulators continues.

Internal factors also influenced the decision. Several insiders are reportedly unwilling to sell shares at this stage, reducing urgency for a large raise.

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