Tether has lowered its initial fundraising plans after investors resisted the firm’s $500 billion valuation. The firm’s advisors claim that the company adjusted its strategy after hearing investor concerns about the firm’s valuation, not liquidity. The firm is profitable and does not need to raise funds, according to an FT report on Wednesday.
Previous talks had targeted raising between $15 billion and $20 billion. This will place the firm among the most valuable private companies globally. Investors were hesitant about the firm’s valuation.
Advisers are now considering a smaller increase. Estimates are now made for an increase that can be as low as $5 billion.
This change is due to sensitivity in valuations. It does not indicate any financial stress. It has been stated by the executives that not raising any capital is an acceptable option.
Tether Posts $10B Profit as USDT Dominance Continues
Tether made profits of about $10 billion last year. These profits were from the yield received from the reserves backing USDT.
USDT remains the largest stablecoin in the world. The circulation volume is between $185 billion and $187 billion.
Tether has a concentrated ownership structure. The insiders have shown little interest in selling shares. Their behavior has limited the size of any possible deal.
Its balance sheet resembles a large financial institution’s. The latest January attestation shows large investments in US government debt. The documents detail the size of the investments.
U.S. Treasury holdings are over $122 billion. When including the short-term lending agreements, the total Treasury exposure is over $141 billion. This is the backing for the stablecoin liabilities.
Also Read: Binance Adds 1,315 Bitcoin to SAFU Fund in a $100M Move
Tether also expanded its reserves of gold. Its reserves and tokenized gold products hold between 80 and 116 metric tons of the precious metal.
Tether added 27 metric tons of gold in the fourth quarter of 2025. This was a significant expansion for the company.
Capital Flexibility and Regulated USAT
The fundraising talks remain flexible. The outcomes of the talks depend on investor appetite and prevailing market conditions. The management has indicated no urgency to finalize a deal.
The announcement coincides with the fundraising reassessment. Tether has introduced USAT, which is a U.S.-regulated stablecoin. This is issued by Anchorage Digital Bank under the rules for federal stablecoins.
USAT is fully compliant with new US regulations. It is not linked to USDT. USDT is popular but does not comply with current US stablecoin regulations.
The product’s launch makes Tether a competitor to several regulated products, which include Circle’s USDC, as well as products related to Fidelity, JPMorgan, and PayPal. The competition is increasing, especially with the addition of new market participants.
Tether has been engaging with the authorities. They are currently working with almost 300 law enforcement agencies. These law enforcement agencies are based in over 60 countries.
The firm’s growing footprint in Treasuries and gold continues to draw attention. Tether now acts as a bridge between traditional finance and digital assets.
Also Read: Tether Holds $6.3 Billion Excess Reserves Despite Equity Decline in 2025
