Tether Holdings Seek investors to raise $20 billion
TL;DR Breakdown
- CEO reveals that Tether is mulling raising funds to expand business scale
- The company is evaluating high-profile investors for the raise
- Reportedly, Tether seeks to raise $20 billion to reach $500 billion milestone
Tether CEO Paulo Ardoino took it to X to reveal that the company is mulling raising funds from select high-profile investors to expand the business scale across all current business lines. According to the Bloomberg report, Tesla Holdings SA is already in discussions with investors to raise between $15 and $20 billion to reach a $500 billion valuation, making the firm one of the world’s most valuable private companies. According to sources, the El Salvador-based firm is seeking to exchange a 3% stake for the sum.
Tether eyes $500 billion evaluation.
Tether Holdings Limited started out as a stablecoin company that has since expanded to various fields in fintech, biotechnology, AI, and agriculture. The company’s investments outside of cryptocurrencies include: $200 million in BlackRock neurotech, acquiring a majority stake in the firm, while it also holds as much as 70% of Adecoagro, a Latin American agro-industrial company.
Now, the company is seeking to cross the $500 billion valuation milestone by inviting some selected high-profile investors to raise between $15 and $20 billion for a 3% stake. The sources that remain anonymous stated that the figures were early estimates, and the company is in early talks with the investors, so the final amount raised and the stake offered may change.
The stablecoin giant’s current valuation leaves rival stablecoin providers like Circle (USDC) and Paxos (USDP) chasing shadows while putting it in the leagues of Mastercard, Netflix, and OpenAI.
According to Cantor Fitzgerald, the lead advisor, the transaction would involve new equity rather than existing investors having to sell their current stake. CEO Paulo Ardoino believes it would enable the company to “maximize” its scale of strategy across the existing business lines, including AI, stablecoins, biotech and more.
The news follows recent Tether expansion in the United States, particularly with the launch of stablecoin, USAT, a dollar-backed stablecoin in US markets.
