Tether's $20B Raise Fuels AI, Energy Expansion to Rival Tech Giants

Tether, the issuer of the world’s largest stablecoin USDT, is reportedly in early-stage discussions to raise up to $20 billion through a private equity offering, which could value the company at approximately $500 billion. This valuation would position Tether as one of the most valuable private companies globally, rivaling entities like OpenAI and SpaceX. The fundraising, which involves issuing new shares rather than selling existing ones, is being advised by Cantor Fitzgerald, with interested investors granted access to a private data room. A deal closure is anticipated by year-end, though terms remain fluid and could adjust based on investor appetite. CEO Paolo Ardoino confirmed the company is “evaluating a raise” with a select group of “high-profile key investors” to scale its strategy across stablecoins, AI, commodity trading, and energy sectorsTether eyes $20B raise at $500B valuation: is an IPO next?^[1].

The proposed raise aligns with Tether’s recent financial performance, which includes a $4.9 billion net profit for Q2 2025 and $162.5 billion in reserves against $157.1 billion in liabilities. USDT’s market capitalization has surged past $173 billion, more than double that of Circle’s USDC ($74 billion), underscoring Tether’s dominance in the stablecoin marketTether $20 Billion Equity Raise Nears $500B Valuation^[2]. The valuation targets reflect a 3% stake in the company, though Bloomberg noted the figures are aspirational and could scale back depending on negotiationsTether Looking to Raise Upto $20B, Bringing its Valuation to …^[3]. Tether’s reserves include $8.9 billion in Bitcoin, highlighting its diversified asset base and potential to generate returns through treasury holdings$USDT Issuer Tether seeks $20B at a $500B Valuation^[4].

Speculation has intensified about a potential Tether IPO, especially following Circle’s successful public listing earlier in 2025. Industry figures, including BitMEX co-founder Arthur Hayes, argue that a Tether IPO could disrupt the stablecoin sector by leveraging its higher profitability compared to Circle, which shares revenue with Coinbase. Tether’s direct global distribution model, without intermediaries, allows it to capture more value from its reserves than its rivalsTether eyes $20B raise at $500B valuation: is an IPO next?^[5]. However, CEO Ardoino previously dismissed IPO rumors in June 2025, stating the company saw “no need to go public,” suggesting the current discussions are exploratoryTether eyes $20B raise at $500B valuation: is an IPO next?^[1].

The fundraising effort also aligns with Tether’s expansion plans, including the launch of USAT, a U.S.-focused stablecoin, and the appointment of former White House crypto adviser Bo Hines to lead regulatory initiatives. These moves indicate a strategic push to capitalize on U.S. market opportunities and regulatory clarity, further differentiating Tether from competitors like Circle$USDT Issuer Tether seeks $20B at a $500B Valuation^[4]. The company’s profitability and reserve strength have drawn institutional interest, though skepticism remains about the sustainability of such high valuations in a volatile market$USDT Issuer Tether seeks $20B at a $500B Valuation^[6].

Market participants are closely watching Tether’s reserve transparency, profit margins, and regulatory developments, which will influence investor confidence. The final structure of the raise—whether priced immediately or deferred—and the involvement of major institutional investors will determine its success. While the deal could solidify Tether’s position in the stablecoin space, it also reflects broader crypto trends, including the convergence of stablecoins with AI and institutional capital. As the sector evolves, Tether’s ability to execute its expansion plans and maintain reserve credibility will be critical to its long-term valuation and market influenceTether Looking to Raise Upto $20B, Bringing its Valuation to …^[7].