Tether's $500B bid fuels AI, energy push as stablecoin titan diversifies

Tether, the issuer of the largest stablecoin by market capitalization, has confirmed plans to raise capital through a private placement that could value the company at approximately $500 billion. The fundraising, which is currently in early stages, involves issuing new equity to a select group of high-profile investors, with the company seeking to raise between $15 billion and $20 billion for a roughly 3% stake. CEO Paolo Ardoino disclosed the initiative on his official X account, emphasizing that the funds would "maximize the scale" of Tether’s strategy across stablecoins, artificial intelligence, commodity trading, energy, and other business linesTether reportedly seeks lofty $500 billion valuation in capital raise^[1]. The valuation, if realized, would place Tether among the world’s most valuable private companies, rivaling entities such as OpenAI and SpaceXTether reportedly seeks lofty $500 billion valuation in capital raise^[1].

The private placement is being advised by Cantor Fitzgerald, according to Bloomberg, which cited sources familiar with the matter. Prospective investors have been granted access to a data room to review Tether’s financials and strategic plansTether Looking to Raise Upto $20B, Bringing its Valuation to …^[2]. While the final terms remain fluid, the structure of the deal suggests a focus on expanding Tether’s operational footprint. The company’s stablecoin, USDT, has a market capitalization of $172.8 billion, significantly outpacing its nearest rival, Circle’s USDC, which holds $74 billionTether reportedly seeks lofty $500 billion valuation in capital raise^[1]. Tether’s reserves, reported to exceed $162.5 billion as of Q2 2025, further underscore its financial strength, with $8.9 billion in Bitcoin holdings among its assetsTether Looking to Raise Upto $20B, Bringing its Valuation to …^[2].

The capital raise aligns with Tether’s broader strategy to reestablish a U.S. presence amid shifting regulatory and political landscapes. The company recently established a U.S.-focused subsidiary, USAT, to be regulated under the proposed GENIUS Act, signaling its intent to navigate domestic regulatory frameworksTether reportedly seeks lofty $500 billion valuation in capital raise^[1]. This move coincides with a net profit of $4.9 billion in the second quarter of 2025, reflecting robust earnings despite macroeconomic uncertaintiesTether Looking to Raise Upto $20B, Bringing its Valuation to …^[2]. Analysts note that the valuation could attract institutional interest, particularly as stablecoins generate income through Treasuries and other assets, offering a compelling return profile in a low-yield environmentTether $20 Billion Equity Raise Nears $500B Valuation^[3].

Market participants remain cautious, however, given the speculative nature of the valuation. While the $500 billion figure would represent a historic milestone for stablecoins, the deal’s final structure and pricing could evolve as negotiations progress. Some sources caution that the talks are preliminary, with details such as the offering size and investor composition subject to changeTether reportedly seeks lofty $500 billion valuation in capital raise^[1]. Tether’s dominance in the stablecoin market, coupled with its reserves and profit margins, provides a foundation for optimism, but risks persist if regulatory scrutiny or macroeconomic headwinds intensifyTether Looking to Raise Upto $20B, Bringing its Valuation to …^[2].

The fundraising effort highlights the growing role of stablecoins in global finance, with Tether’s USDT facilitating $1.7 trillion in daily transactions. If the capital raise materializes, it would mark one of the largest private equity rounds in cryptocurrency history, reshaping competitive dynamics in the stablecoin sector. Competitors such as Circle and Binance face intensified pressure to secure similar valuations, while investors may reassess the sector’s growth potentialTether $20 Billion Equity Raise Nears $500B Valuation^[3]. Tether’s expansion into AI, energy, and communications also signals a strategic pivot to diversify revenue streams beyond its core stablecoin operationsTether reportedly seeks lofty $500 billion valuation in capital raise^[1].