Tether CEO Disputes Reports of Fundraising Pullback Amid Valuation Concerns

Tether disputed reports Wednesday (Feb. 4) that it scaled back fundraising plans due to investor pushback against a proposed $500 billion valuation, Reuters reported.

According to a report by the Financial Times, advisers for the digital asset firm recently floated raising as little as $5 billion. This figure represents a significant decrease from initial reports last year, which suggested the company was seeking between $15 billion and $20 billion. The publication, citing people familiar with the matter, indicated that the reduction in scope was a result of investor resistance regarding the company’s ambitious valuation targets.

However, Tether CEO Paolo Ardoino challenged the characterization of a strategic retreat, calling the rumors a “misconception.”

Speaking to Reuters, Ardoino stated that the higher capital ranges discussed previously were intended “as a maximum in hypothetical scenarios, not as a target and not as a capital raising plan.” He maintained that the company continues to see “significant interest” from investors at a $500 billion valuation. Ardoino emphasized that current discussions are guided by “ethos and long-term alignment, not by urgency or by the pursuit of the largest possible raise.”

The conflicting narratives follow a September report by Bloomberg News, as featured in PYMNTS, which detailed Tether’s potential plans to sell a roughly 3% stake via private placement. That proposed transaction would have valued the company at up to $500 billion.

Tether remains a dominant force in the digital economy as the issuer of USDT, the world’s most widely used stablecoin. The El Salvador-based company currently reports $187 billion worth of tokens in circulation, serving as a “digital dollar” that allows traders to manage volatility and ease transfers between different digital assets.

In a move likely intended to court institutional trust, the company also recently expanded its footprint in the regulated U.S. market, as reported by PYMNTS. On Jan. 27, Tether launched USAT, a separate dollar-backed stablecoin issued by Anchorage Digital Bank designed to comply with the federal GENIUS Act.

Despite questions regarding the fundraising climate, Tether projects continued financial strength. Last month, Ardoino told Reuters that the company expects its profit for 2026 to exceed the estimated $10 billion earned in 2025, though that figure would potentially trail the $13.7 billion the company reportedly earned in 2024.