Tether's $500B Valuation Rivals Public Giants, No IPO

Tether Holdings SA, the issuer of the world’s largest stablecoin, is in discussions to raise up to $20 billion through a private placement, a move that could elevate its valuation to $500 billion. According to sources familiar with the matter, the El Salvador-based company is targeting $15 billion to $20 billion in exchange for a roughly 3% stake, though final terms remain fluid as negotiations are in early stages. This valuation would position Tether among the most valuable private companies globally, surpassing entities like Costco and Coca-Cola if extrapolated to a public market context.

The fundraising aligns with Tether’s recent financial performance. Q2 2025 attestation reports, audited by BDO, a top-five global accounting firm, confirmed a $4.9 billion net profit for the quarter and a year-to-date total of $5.7 billion in net profits. The company also reported over $127 billion in U.S. Treasury exposure, including $105.5 billion in direct holdings, marking a significant portion of its $162.5 billion in total assets. Shareholder capital remains stable at approximately $5.47 billion, underscoring its solvency and capacity to absorb market volatility.

Despite the valuation surge, Tether CEO Paolo Ardoino has firmly dismissed speculation about an initial public offering (IPO). While analyst Jon Ma of Artemis modeled Tether’s potential public valuation at $515 billion using Circle’s 69.3x EBITDA multiple and Tether’s projected 2025 earnings, Ardoino emphasized the company’s preference for its private structure. “No need to go public,” he stated, highlighting confidence in Tether’s operational efficiency and strategic independence. This stance contrasts with Circle, Tether’s rival, which recently listed on the NYSE at an $8.1 billion valuation, sparking comparisons in the stablecoin sector.

Tether’s financial strength is further bolstered by its diversified reserves. Recent reports indicate holdings in U.S. Treasuries, gold, and Bitcoin, with unrealized gains from the latter two assets contributing $5 billion to 2024 profits. The company has reinvested $4 billion into U.S.-based initiatives, including investments in Rumble and AI infrastructure, reflecting its broader strategy to expand beyond stablecoin issuance.

The valuation debate underscores growing institutional interest in stablecoins, particularly as policymakers like those in the U.S. advance frameworks for digital dollars. Tether’s expansion—evidenced by a $20 billion year-to-date increase in circulating USD₮ to $157 billion—positions it as a key player in reshaping global liquidity access. However, skeptics remain cautious about transparency and regulatory scrutiny, factors that have historically complicated Tether’s public credibility.

Source: [1] Tether Seeks $500 Billion Valuation in Major Raise (https://news.bloomberglaw.com/securities-law/crypto-giant-tether-seeks-500-billion-valuation-in-major-raise) [2] Tether’s $500 Billion Valuation Sparks IPO Rumor (https://beincrypto.com/tether-ipo-discussion-500-billion-valuation/) [4] Tether Issues $20B in USD₮ YTD (https://tether.io/news/tether-issues-20b-in-usdt-ytd-becomes-one-of-largest-u-s-debt-holders-with-127b-in-treasuries-net-profit-4-9b-in-q2-2025-attestation-report/)