Tether has drastically reduced its ambitions for a private equity funding round at a valuation estimated at $500 billion. This is because the USDT issuer cut its initial proposal from between $15 and $20 billion to approximately $5 billion.
Tether’s initial plans, which emerged in 2025, aimed to achieve a total valuation of $500 billion through a $15-20 billion private placement. These plans have been scaled back significantly.
The proposal attracted interest from high-profile investors in previous rounds, but investor skepticism regarding the valuation and the business model’s sustainability led to a recalibration to approximately $5 billion, or, as the company itself stated, no external funding.
“Not securing external funding is an acceptable outcome,” said Tether CEO Paolo Ardoino, reflecting a shift toward defensive financial management. This stance signals a willingness to prioritize internal cash generation over an aggressive, high-valuation exit.
The pullback is significant because Tether is a key component of the crypto liquidity infrastructure. A stalled or repriced share sale alters how traders, treasuries, and institutions assess counterparty and market risk.
Fundraising pullback and investor skepticism
Reports cited a projected decline in net profit by 2025 as an additional obstacle to a high-priced IPO. Coupled with a broader contraction in the crypto market, which saw approximately $467.6 billion in market value disappear, these figures heightened investor caution about backing a valuation of several hundred billion dollars for a company largely derived from stablecoin issuance.
Concerns identified in the coverage include the composition and transparency of Tether’s reserves and the concentration of revenue in USDT issuance rather than diversified income streams. These issues are central to public investors and regulators and help explain why outside capital has been hesitant at the previously floated price.
Any future IPO would likely require a demonstrable track record of diversified revenue streams, clearer disclosure of the reserve composition, and a valuation aligned with risk-adjusted earnings. Until those conditions are met, reports suggest that Tether will continue to prioritize profitability and reserve management over a rushed public debut.
