Tether is now weighing a fundraising round of about $5 billion, a sharp step down from market chatter that suggested the company was seeking $15 billion to $20 billion at a valuation near $500 billion. CEO Paolo Ardoino said that interpretation was a “misconception,” adding that the larger figure was never a firm target but only the maximum amount of equity the company might sell under ideal conditions.
The reset points to a clearer reading of investor appetite. The issue was not scale alone. Investors were uneasy with a valuation many saw as too aggressive, especially for a stablecoin issuer that, despite its size, is still judged through models that do not easily grant tech-style growth multiples.
Valuation pressure led investors to hold back
According to the report, advisers including Cantor Fitzgerald are now looking at a smaller capital raise that would reduce dilution and sit closer to what the market is willing to support. That shift does not suggest Tether failed to attract interest; it shows the terms under discussion are being brought back into line with investor expectations.
USDT circulation stands near $185 billion to $186 billion, underscoring Tether’s dominance in the stablecoin market. Even so, investors appear reluctant to accept a valuation framework that treats a stablecoin company the same way they might price a fast-expanding software platform. The bigger the starting valuation, the tighter the room for upside.
Strong profits reduce the need for outside capital
Ardoino also stressed that Tether is highly profitable and does not urgently need external funding. In its Q4 2025 attestation, the company reported nearly $10 billion in annual profit, down slightly from $13 billion in 2024 but still substantial by any measure. A large share of that income came from yields generated by its holdings of U.S. Treasuries.
Tether’s U.S. Treasury position was reported at around $141 billion. The company also disclosed $6.3 billion in excess reserves. Reserve transparency has long been one of the main issues surrounding Tether, and while the firm still does not publish full audits, the latest disclosures have eased part of the concern from investors and regulators.
Expansion continues beyond stablecoins
At the same time, Tether is still broadening its footprint outside stablecoin issuance. The company recently launched MiningOS, an open-source operating system for Bitcoin mining that is designed to support both small mining setups and large-scale mining farms. The move adds another layer to its infrastructure strategy.
That release followed earlier investments, including a 40% stake in a Bitcoin mining company in Uruguay. Taken together, the mining software push and equity investment show Tether pursuing a more vertically integrated crypto infrastructure business. The smaller fundraising plan looks less like a retreat and more like a tighter, more market-aligned structure.