Tether's Bitcoin-Gold Reserves Power $500B Valuation, Outpacing Circle

Tether, the leading stablecoin issuer, is reportedly seeking to raise $15–$20 billion through a private placement offering a 3% stake, which would value the company at approximately $500 billion—dwarfing its closest competitor, publicly traded Circle Internet Financial, which is currently valued at around $30 billion . The funding round, led by Cantor Fitzgerald as financial advisor, aims to scale Tether’s operations across stablecoins, AI, commodity trading, energy, and media sectors, according to CEO Paolo Ardoino . This valuation would place Tether among the world’s most valuable private companies, comparable to entities like OpenAI and SpaceX .

Tether’s USDT, the largest stablecoin by market capitalization ($173 billion), dominates the sector with a 56% share, far ahead of Circle’s USDC ($74 billion, 25% share) . The company’s profitability has surged, with a $4.9 billion net profit in Q2 2025 and a 99% profit margin, driven by investments in U.S. Treasuries, corporate bonds, gold, and Bitcoin . Unlike Circle, which shares revenue with Coinbase for USDC, Tether retains all profits from its reserves, enhancing its competitive edge .

The proposed valuation reflects Tether’s strategic pivot to expand its U.S. presence under a pro-crypto regulatory environment. The firm has launched a U.S.-regulated stablecoin, USAT, compliant with the GENIUS Act, and appointed former Trump administration official Bo Hines to lead its American operations . Additionally, Tether plans to invest in infrastructure and partnerships, including a $775 million stake in Rumble Inc., a right-leaning video platform, and collaborations with Cantor Fitzgerald and Anchorage Digital Bank for USAT’s development .

Circle’s stock price has declined by 56% from its peak this year amid concerns over Federal Reserve rate cuts reducing yields on its short-term bond holdings. In contrast, Tether’s diversified reserves, including Bitcoin and gold, are expected to benefit from a low-rate environment . Analysts note that Tether’s valuation multiple (2.7x assets) far exceeds Circle’s (0.4x assets), highlighting structural differences in their business models .

Tether has denied formal plans to raise funds, but investor data rooms have opened, suggesting the process is underway . The firm’s reluctance to pursue an IPO aligns with Ardoino’s focus on long-term infrastructure rather than quarterly earnings scrutiny. Meanwhile, the stablecoin market approaches a record $300 billion in total value, with Tether’s supply growing 26% year-to-date to $173 billion .