Tether CEO Clarifies $500B Valuation Fundraising Reports

Tether Responds to Fundraising Reports

Tether's CEO, Paolo Ardoino, addressed what he termed a "misconception" regarding the company's fundraising plans. This follows media reports that Tether scaled back ambitions after investor pushback on a proposed $500 billion valuation.

Fundraising Situation Overview

Reports suggested Tether's advisers considered raising as little as $5 billion, a decrease from an initial range of $15 billion to $20 billion. Ardoino clarified this initial range was a hypothetical maximum, not a firm fundraising target. He affirmed there is "significant interest" in the company at the $500 billion valuation.

Market Impact and Position

As the issuer of USDT, the world's largest stablecoin with $187 billion in circulation, Tether's stability is crucial for the crypto market. The CEO's clarification seeks to reassure investors of the company's strong financial standing, with profit projections expected to exceed $10 billion in 2025.

Summary and Outlook

The statement aims to stabilize market perception of Tether's growth strategy. The company emphasizes that any potential fundraising is guided by long-term alignment with partners, not urgency. Market participants will monitor for official announcements to gauge Tether's strategic direction.

FAQ

Q: What was the misconception about Tether's fundraising?
A: The initial $15-$20 billion range was a hypothetical maximum scenario, not a firm fundraising target, according to CEO Paolo Ardoino.

Q: What is Tether's proposed valuation?
A: Discussions have centered on a proposed valuation of $500 billion, which has reportedly attracted significant investor interest.

Source: Investing.com