--- title: "Investors find valuations too expensive! Tether's fundraising target cut from $20 billion to $5 billion, even the top stablecoin \"backs down\"?" description: "With the significant decline in cryptocurrency, investors are expressing concerns about Tether's $500 billion valuation, and the advisory firm is currently considering reducing the financing amount to" type: "news" locale: "en" url: "https://longbridge.com/en/news/274766046.md" published_at: "2026-02-04T06:42:55.000Z" --- # Investors find valuations too expensive! Tether's fundraising target cut from $20 billion to $5 billion, even the top stablecoin "backs down"? > With the significant decline in cryptocurrency, investors are expressing concerns about Tether's $500 billion valuation, and the advisory firm is currently considering reducing the financing amount to a minimum of $5 billion. Tether's profit structure is highly dependent on the performance of the cryptocurrency market and investments in reserve assets, with profits expected to decline by 23% year-on-year to $10 billion in 2025 The global largest stablecoin issuer Tether's $500 billion valuation target has encountered resistance from investors, leading to a significant reduction in its fundraising expectations. Tether originally planned to raise between $15 billion and $20 billion, but advisors are now considering lowering the fundraising amount to a minimum of $5 billion, highlighting market skepticism about its sky-high valuation. According to a report by the Financial Times on Wednesday, Tether CEO Paolo Ardoino downplayed the fundraising scale in an interview, stating that the initial target of $15 billion to $20 billion was a "misunderstanding." **He stated, "This number is not our target, but rather the maximum amount we are prepared to sell. If we don't sell a single share, we would be very happy." This statement sharply contrasts with the ambitious fundraising plan the company launched last year.** Investors are concerned about the $500 billion valuation, which would place Tether among top private companies like OpenAI, Anthropic, SpaceX, and ByteDance. Although Tether made a profit of about $10 billion last year, profits are expected to decline by 23% year-on-year in 2025, putting its profitability under pressure. The cryptocurrency market has significantly declined over the past six months, with traders fleeing speculative assets, further weakening investor interest in overvalued crypto projects. ## Valuation Dispute as the Biggest Barrier to Fundraising According to insiders, Tether's advisors have faced significant resistance after engaging with potential investors. The $500 billion valuation target has raised widespread skepticism, with investors privately expressing concerns about this pricing. Paolo Ardoino defended the high valuation by comparing Tether to loss-making AI companies. "AI companies have profits as much as ours, just with a negative sign in front," he said, "If you believe that an AI company is worth $800 billion, and it has a huge negative sign in front, then that's up to you." **Tether claims to have made a profit of about $10 billion last year, mainly from the returns on asset reserves that support the value of USDT. The company has a $185 billion market cap for the dollar-pegged stablecoin USDT, which serves as a reserve currency in the digital asset market. However, profits are expected to decline by about a quarter in 2025, which Ardoino attributes to the drop in Bitcoin prices.** Insiders warn that negotiations are still ongoing, and the fundraising terms may change. If the broader cryptocurrency market begins to rebound, investor sentiment may shift. ## Regulatory Risks Make Investors Hesitant According to insiders, some potential investors are concerned about the regulatory risks facing Tether. Since its establishment in 2014, the crypto group has been scrutinized due to concerns about the use of the token for illegal activities, as well as issues regarding the transparency and quality of its asset reserves. In recent years, Tether has released quarterly attestations from accounting firm BDO Italia regarding its reserves but has not undergone a full audit. Ardoino stated that the company has shown potential investors "in-depth" tools to cooperate with various law enforcement agencies S&P Global Ratings downgraded Tether's reserve rating to the weakest level at the end of last year, citing increasing exposure to high-risk assets such as Bitcoin and gold. At that time, Ardoino responded, "We proudly accept your disdain." The new U.S. stablecoin legislation signed by Trump, along with the public offering by U.S. competitor Circle last year, has provided momentum for Tether. Tether recently launched a new token in the U.S. that complies with regulatory requirements. However, regulatory uncertainty remains a major concern for investors. ## Profitability Under Pressure **Tether's profit structure is highly dependent on the performance of the crypto market and investments in reserve assets. Profits are expected to decline by 23% year-on-year to $10 billion in 2025, reflecting the direct impact of the downturn in the crypto market.** **Ardoino revealed that the company gained approximately $8 billion to $10 billion from its gold holdings, benefiting from rising precious metal prices. USDT has accelerated its growth since 2020, making Tether one of the largest buyers of U.S. Treasury bonds globally and a heavyweight participant in the gold market in recent months.** These large-scale purchases have made Tether one of the most important links between the global financial system and the volatile world of cryptocurrencies. The company is controlled by a small circle of long-term executives, and insiders are reluctant to sell shares, which is also part of the reason why the amount of equity to be sold remains uncertain. Tether's efforts to attract well-known investors are seen as a barometer of interest in the cryptocurrency industry. This move is viewed as an attempt to solidify Tether's credibility and network, despite the company being highly profitable and requiring little additional capital. Digital assets received a boost after Trump's election due to promises of a more favorable regulatory environment in the U.S., but the market has significantly declined over the past six months ### Related Stocks - [LMBO.US - Direxion Daily Crypto Industry Bull2XETF](https://longbridge.com/en/quote/LMBO.US.md) - [CAN.US - Canaan](https://longbridge.com/en/quote/CAN.US.md) - [SATO.US - Invesco Alerian Galaxy Crypto Economy ETF](https://longbridge.com/en/quote/SATO.US.md) - [CONL.US - GraniteShares 2x Long COIN Daily ETF](https://longbridge.com/en/quote/CONL.US.md) - [BITO.US - ProShares Bitcoin Strategy ETF](https://longbridge.com/en/quote/BITO.US.md) - [FDIG.US - Fidelity Crypto Industry And Digital Payments ETF](https://longbridge.com/en/quote/FDIG.US.md) - [HODL.US - VanEck Bitcoin ETF](https://longbridge.com/en/quote/HODL.US.md) - [GLXY.US - Galaxy Digital](https://longbridge.com/en/quote/GLXY.US.md) - [ETHW.US - Bitwise Ethereum ETF](https://longbridge.com/en/quote/ETHW.US.md) - [CORZ.US - Core Scientific, Inc.](https://longbridge.com/en/quote/CORZ.US.md) ## Related News & Research | Title | Description | URL | |-------|-------------|-----| | 由於立法者在數字貨幣法案上停滯不前，韓國銀行推動由銀行控制的韓元穩定幣 | 韓國銀行（BOK）在韓國數字貨幣控制立法僵局中，倡導由銀行主導的韓元掛鈎穩定幣發行模式。BOK 警告稱，允許私人公司發行穩定幣可能會削弱貨幣政策並引入系統性風險。它提議由銀行主導發行的財團模式，強調需要監管監督。隨着立法者在這一問題上仍然存 | [Link](https://longbridge.com/en/news/276690746.md) | | ESMA 的打擊行動是否會終結歐盟的槓桿加密貨幣交易？ | ESMA 現在要求所有槓桿加密產品遵循歐盟關於風險和槓桿的規定 | [Link](https://longbridge.com/en/news/276806985.md) | | 為加沙推出美元穩定幣？特朗普顧問的提議引發關注 | 與唐納德·特朗普的和平委員會相關的顧問正在探索一種與美元掛鈎的穩定幣，以幫助加沙地區的戰後重建。這種由私人運營的穩定幣以 1:1 的比例由美元支持，旨在促進加沙地區的援助支付和商業活動，因為傳統銀行系統受到損害。儘管支持者將其視為解決現金短 | [Link](https://longbridge.com/en/news/276632573.md) | | Oobit 實現了將穩定幣即時轉賬到全球銀行賬户的功能 | Oobit，一家由 Tether 支持的全球支付平台，推出了一項服務，允許用户將穩定幣直接發送到全球銀行賬户，幾乎實現即時結算。該服務消除了傳統的延遲和中介，使資金能夠在沒有 SWIFT 處理的情況下到賬。它支持美元、歐元、墨西哥比索和菲律 | [Link](https://longbridge.com/en/news/276760143.md) | | Stablecore 與 Jack Henry 合作：1,600 家銀行正在關注穩定幣 | Stablecore 與傑克亨利的合作使銀行和信用合作社能夠提供穩定幣賬户，從而增強穩定幣在主流金融中的採用和合法性。這一整合支持質押收益，彌合傳統金融（TradFi）與去中心化金融（DeFi）之間的差距。通過接觸超過 1,670 家銀行客 | [Link](https://longbridge.com/en/news/276749031.md) | --- > **Disclaimer**: This article is for reference only and does not constitute any investment advice.