Tether floats $5 billion raise after investor pushback on $500 billion valuation target: FT

According to reports published in the Financial Times (FT), stablecoin issuer Tether has reduced its ambitions for a potential capital raise following significant pushback from prospective investors. The company was reportedly exploring a $5 billion fundraising round, a substantial decrease from the initial valuation target that had caused friction. Tether had previously sought to pitch the company at a staggering valuation of up to $500 billion during early discussions with investors. This high valuation, which would have positioned Tether among the most valuable private companies globally, was met with considerable skepticism. Investors reportedly cited concerns over the extremely high valuation relative to Tether’s primary business model—issuing the USDT stablecoin—and the ongoing regulatory scrutiny regarding the composition and management of its reserves. The pursuit of the $5 billion raise indicates Tether’s strategic pivot to secure institutional investment while adjusting expectations to meet prevailing market sentiment.

Source: Tether floats $5 billion raise after investor pushback on $500 billion valuation target: FT