Tether Holdings SA, the issuer of the world’s largest stablecoin, is reportedly in talks with investors to raise up to $20 billion in a potential fundraising round. This move could potentially propel the crypto giant into the ranks of the world’s most highly valued private firms.
Sources familiar with the discussions have revealed that Tether is aiming to secure between $15 billion and $20 billion in exchange for approximately a 3% stake through a private placement. However, it is important to note that these figures are subject to change as the talks are still in the early stages. If successful, this fundraising could value Tether at around $500 billion, putting it in the same league as companies like OpenAI and SpaceX.
The deal would involve the issuance of new shares rather than existing investors cashing out, with Cantor Fitzgerald serving as the lead adviser. Tether’s chief executive, Paolo Ardoino, has confirmed that the company is exploring the possibility of raising funds from well-known investors to fuel expansion in various areas such as stablecoins, artificial intelligence, commodity trading, energy, communications, and media.
Tether’s resurgence in the US market is also on the horizon as the company looks to establish a strong presence in the country. After being absent for several years due to regulatory disputes, Tether is now gearing up to make a comeback. With the support of President Donald Trump’s pro-crypto stance, Tether has announced the formation of USAT, a US-based business entity operating under the GENIUS Act.
Stablecoins like Tether’s USDT token, which is pegged to the US dollar, have gained significant traction in the digital asset space. Tether’s USDT token currently boasts a market value of $172 billion, surpassing its closest rival Circle’s USDC token valued at $74 billion. Tether has been able to generate substantial profits by investing its reserves in cash-like assets such as US Treasuries. In fact, the company reported a profit of $4.9 billion in the second quarter of this year, with a claimed profit margin of 99%.
As part of its US strategy, Tether has appointed Bo Hines, a former White House crypto official, to spearhead its entry into the American market. Investors interested in the fundraising deal have been granted access to company data for review, with expectations that the fundraising could be finalized by the end of the year.
In conclusion, Tether’s potential $20 billion fundraising round signifies a significant milestone in the company’s growth trajectory. With plans to expand into new business verticals and reestablish its presence in the US market, Tether is poised to solidify its position as a key player in the cryptocurrency industry.
—
The rewritten content has been tailored to seamlessly integrate into a WordPress platform while maintaining the original information and key points from the source article.