Tether has reportedly reduced its planned fundraising target after facing resistance from investors. According to a Financial Times report on February 4, the stablecoin issuer is now considering raising about $5 billion, down from the $15 to $20 billion initially discussed in 2025.
The earlier range was linked to a $500 billion valuation, which would have made Tether one of the world’s most valuable private companies. Several investors questioned whether this figure reflected realistic growth expectations. CEO Paolo Ardoino emphasized that the higher amount was never a firm goal and that the company, which remains profitable, does not urgently need external capital.
Tether issues USDT, the world’s largest dollar-pegged stablecoin, with approximately $185 billion in circulation. Last year, the company earned around $10 billion in profit, primarily from returns on reserves held in U.S. Treasuries. Despite strong earnings, some investors remain cautious about the valuation and fundraising plans.
The company has also diversified its reserves, holding large positions in Bitcoin and gold. In the fourth quarter of 2025, Tether purchased roughly $779 million in Bitcoin, raising total holdings to over 96,000 BTC. Transparency concerns persist, as S&P Global Ratings gave USDT its lowest score on the stablecoin stability scale last November, citing disclosure gaps and significant exposure to Bitcoin, gold, and secured loans. Ardoino criticized the rating methodology, stating it fails to capture Tether’s business model.
The lowered fundraising target shows Tether is adjusting to investor feedback. Whether the company moves forward with a smaller raise or pauses fundraising entirely will depend on investor appetite and broader crypto market conditions in the coming months.
