Recent reports of Tether's ambitious $20 billion fundraising initiative were clarified by CEO Paolo Ardoino, who stated that such figures were a misunderstanding. Despite earlier discussions suggesting a potential $15 billion to $20 billion capital raise, valuing the company at around $500 billion, these plans have been significantly downsized to approximately $5 billion. This adjustment comes amid investor concerns regarding Tether’s valuation, the volatile regulatory landscape, and ongoing issues surrounding the transparency of its reserves. Ardoino emphasized that Tether, bolstered by robust profitability, is not in need of external funding, and its internal stakeholders show no desire to divest their shares.
Tether's Strategic Position Amidst Market Skepticism
On a recent Wednesday, February 4, 2026, Tether's chief executive, Paolo Ardoino, addressed the circulating news about a colossal fundraising round, dismissing the $20 billion figure as a widespread misconception. According to the Financial Times, initial deliberations involved securing $15 billion to $20 billion, which would have catapulted Tether's valuation close to $500 billion. However, these figures have been considerably trimmed, with current discussions focusing on a more modest $5 billion. Ardoino firmly asserted that Tether’s robust financial health, marked by substantial annual profits, negates any necessity for external capital, highlighting the lack of inclination among existing shareholders to sell their stakes.
Investor apprehension has primarily stemmed from the proposed valuation, which many found excessively high, coupled with persistent regulatory ambiguities and a continuous demand for greater clarity regarding Tether’s reserve assets. Although Ardoino champions Tether’s annual profits—reportedly around $10 billion—as justification for a valuation comparable to leading artificial intelligence firms, market skepticism endures. He pointed out the ironic comparison, stating, "The AI companies are making the same amount of profits we're making, except with a minus sign in the front." This scrutiny intensified following S&P Global Ratings' downgrade of Tether's reserves and the conspicuous absence of a comprehensive independent audit.
Despite this climate of caution, Tether continues to demonstrate significant growth. The supply of its stablecoin, USDT, has surged to $185 billion, solidifying its position as a major investor in U.S. Treasuries and gold. Ardoino credited this sustained momentum to advancements in U.S. stablecoin legislation, the impending IPO of Circle, and Tether's strategic initiatives to introduce a compliant stablecoin within the U.S. market. Nevertheless, the ultimate scale and specific conditions of any future capital infusion remain fluid, heavily influenced by the broader dynamics of the cryptocurrency market. Furthermore, Tether's profits experienced a roughly 25% decline in 2025 compared to the previous year, primarily due to the fluctuating prices of Bitcoin. Conversely, the company reported substantial gains, approximately $8 billion to $10 billion, from its gold holdings, benefiting from a significant rally in the precious metal.
This situation underscores the delicate balance Tether must maintain between rapid expansion and the demands for transparency and regulatory compliance. It highlights the inherent challenges faced by stablecoin issuers in a rapidly evolving financial landscape, where investor confidence is paramount and regulatory frameworks are still taking shape.