Tether's $500B Valuation: Private Control vs. Public Doubt

Tether Holdings SA, the parent company of the world’s largest stablecoin, is in early-stage discussions with investors to raise between $15 billion and $20 billion in exchange for approximately 3% of the company, which would value the El Salvador-based firm at up to $500 billion Tether reportedly planning to raise up to $20 billion at roughly …^[1]. The transaction, if completed, would position Tether among the most valuable private companies globally, surpassing firms like Costco and Coca-Cola in market capitalization Tether Hits $500B Valuation—IPO Buzz Grows Louder^[2]. The fundraising would involve issuing new equity rather than diluting existing shareholders, with Cantor Fitzgerald reportedly serving as the lead adviser Tether reportedly planning to raise up to $20 billion at roughly …^[1]. However, the terms remain fluid, and the final investment amount could fall below the stated range Tether reportedly planning to raise up to $20 billion at roughly …^[1].

Analysts have extrapolated Tether’s potential valuation using financial metrics. Jon Ma, a builder on Artemis, calculated that Tether’s $13 billion in 2024 net profits and projected $7.4 billion EBITDA for 2025 could justify a $515 billion valuation if the company were public Tether Hits $500B Valuation—IPO Buzz Grows Louder^[2]. This projection, based on Circle’s 69.3x EBITDA multiple from its recent IPO, assumes a stable Fed Funds Rate of 4.2% and continued growth in USDT supply Tether Hits $500B Valuation—IPO Buzz Grows Louder^[2]. Tether CEO Paolo Ardoino acknowledged the valuation but dismissed speculation about an initial public offering (IPO), stating, “No need to go public” Tether Hits $500B Valuation—IPO Buzz Grows Louder^[2]. His comments underscore confidence in Tether’s private structure, despite pressure from investors and analysts who argue that an IPO could enhance transparency Tether Hits $500B Valuation—IPO Buzz Grows Louder^[2].

The stablecoin giant’s valuation surge follows Circle’s $8.1 billion IPO, which marked the first public listing of a stablecoin issuer. While Circle’s offering highlighted regulatory scrutiny and market risks for stablecoin firms, Tether has maintained a strategy of scaling privately. Recent attestation reports reveal that Tether’s balance sheet includes billions in U.S. treasuries, gold, and Bitcoin, bolstering its financial credibility Tether Hits $500B Valuation—IPO Buzz Grows Louder^[2]. These assets, combined with its dominance in stablecoin trading volume, position Tether as a key player in the evolving crypto ecosystem.

Skeptics, however, caution against overestimating Tether’s public market potential. The company has faced longstanding transparency concerns, including questions about its reserve composition. Ardoino’s refusal to pursue an IPO reflects a deliberate choice to avoid the regulatory and operational complexities of public markets Tether Hits $500B Valuation—IPO Buzz Grows Louder^[2]. Meanwhile, Tether’s recent $1.5 million seed funding round in June 2025, led by DraperB1 and K Fund, highlights ongoing private investment interest Tether - 2025 Funding Rounds & List of Investors - Tracxn^[3].

The fundraising and valuation discussions underscore the growing institutional focus on stablecoins. With Tether’s market cap exceeding $500 billion, it challenges traditional financial benchmarks and signals a shift in how private crypto firms are valued. However, the company’s trajectory will depend on its ability to maintain financial stability amid regulatory scrutiny and competitive pressures from rivals like Circle. For now, Tether remains committed to its private growth strategy, betting on long-term scalability over immediate public market exposure.