Tether withdraws $20 billion fundraising plans after investor pushback (report)

Tether has scaled back fundraising talks to around $5 billion after investors pushed back on a proposed $500 billion valuation.

Tether has reportedly scaled back its planned multi-billion dollar fundraising target after receiving backlash from investors.

According to a February 4 Financial Times report, advisors to the stablecoin issuer are now exploring the possibility of raising at least $5 billion, down from the $15 billion to $20 billion figure that circulated during initial talks in 2025.

Lower target follows concerns about valuation

The initial range, first reported by Bloomberg in September 2025, was pegged at a valuation of around $500 billion, putting Tether among the most valuable private companies in the world. However, this number has reportedly proven difficult to justify for several potential investors.

In comments cited According to the FT, Tether CEO Paolo Ardoino said the higher figure was never a clear target. According to the director, the amount discussed was only the maximum amount the company would consider selling. “If we had zero sales, we would be very happy too,” Ardoino said, noting that the company is profitable and not in urgent need of external capital.

Tether is the issuer of USDT, the world’s largest dollar-pegged stablecoin, with approximately $185 billion in circulation. The company has generated strong profits from returns on reserves backing USDT, mainly US government bonds. Ardoino said Tether made about $10 billion in profits last year, a figure that featured prominently in valuation discussions.

Despite that profitability, some investors have taken a cautious stance. The FT reported that concerns centered on how the $500 billion valuation was calculated and whether it reflects realistic growth expectations in the current market environment.

Nevertheless, fundraising discussions are still in the early stages and no decision has yet been made on the size or timing of any increase.

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Profitability, reserves and continued skepticism

Tether’s capital plans come against a backdrop of mixed sentiment surrounding the stablecoin issuer. The company has grown beyond cash-like reserves in recent years, building large positions in Bitcoin and gold. Earlier this year, Ardoino confirmed that the company had purchased approximately $779 million worth of Bitcoin in the fourth quarter of 2025, increasing its holdings to over 96,000 BTC.

At the same time, scrutiny of transparency has not faded, especially given that S&P Global Ratings assigned USDT the lowest score on the agency’s stablecoin stability scale in November 2025, citing gaps in disclosure and a higher share of assets such as Bitcoin, gold and secured loans. Ardoino publicly criticized the rating, arguing that traditional frameworks fail to capture Tether’s business model.

The reduced fundraising target suggests Tether is adapting to market feedback rather than continuing with an aggressive valuation. Whether the company continues with a smaller raise or pauses altogether will likely depend on investor interest and broader crypto market conditions in the coming months.