Overview
- Tether’s advisers have discussed cutting the prospective raise to roughly $5 billion after pushback on a valuation near $500 billion, according to the FT.
- CEO Paolo Ardoino said the previously cited $15–$20 billion figure was a maximum rather than a target and noted the company would be fine selling no equity.
- Insiders’ reluctance to part with shares has constrained how much stock could be offered even as talks continue with potential backers.
- Tether reports roughly $10 billion in profit last year from reserve yields, issues USDT with about $185–$187 billion in circulation, and holds large reserves in U.S. Treasuries and physical gold.
- Investor concerns center on transparency and regulatory risk, with S&P having downgraded Tether’s reserve assessment, while the firm also launched USAT through Anchorage Digital Bank to address the U.S. market.