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Tether has walked away from plans to raise up to $20 billion after top investors said no to the company’s $500 billion valuation.
The crypto giant, based in El Salvador, had started talks last year to raise a massive round that could’ve put it among the most valuable private companies on earth. But the demand didn’t come, and now the number being discussed is just $5 billion.
The group, known for its $185 billion dollar-pegged stablecoin USDT, is led by Paolo Ardoino, who tried to downplay the change.
“That number is not our goal. It’s our maximum we were ready to sell,” he said. “If we were selling zero, we would be very happy as well.” Paolo said Tether is profitable and never really needed the cash.
Investors push back on $500 billion valuation
The original goal to raise between $15 billion and $20 billion was floated by Tether’s advisers, but as Paolo put it, it was never a hard target. Now, the pitch has changed.
With crypto prices falling and traders pulling away from high-risk assets, investors aren’t biting. The hype around crypto faded fast, even with Donald Trump back in the White House promising easier rules for digital assets.
Still, Tether claims to be pulling in billions. Paolo said the company made about $10 billion last year, mostly from the returns on its massive reserves backing USDT.But big names in finance have questioned the logic behind the $500 billion price tag.
“The AI companies are making the same amount of profits we’re making, except with a minus sign in the front,” he said. “If you believe that some AI company is worth $800bn, with a huge minus in front, be my guest.”
So far, the company hasn’t made any final decisions on how much equity to sell. Paolo said that’s because many insiders just don’t want to sell at all. He also said they’ve had “a lot of interest” from investors, even at the sky-high price.
Regulation, reserves, and investor concerns pile up
Tether hired Cantor Fitzgerald to help with the deal. The firm has a stake in Tether and is run by the children of U.S. Commerce Secretary Howard Lutnick.
But both sides are keeping quiet about the numbers. People involved say everything is still on the table and could change fast if crypto prices shoot up again.
Trump recently signed new laws that regulate stablecoins in the U.S. Paolo said this has helped push things forward.
Tether also released a U.S. version of its token that fits with the new rules. But not everyone is excited. Some investors are still worried about the company’s history.
Since 2014, Tether has been in the spotlight over concerns about illegal transactions using USDT and how transparent its reserves really are. The group now puts out quarterly reports through BDO Italia, but they’ve never released a full audit.
Paolo said they’ve shown potential investors how they work with law enforcement and the tools they use to track activity.
Last year, S&P Global Ratings gave Tether’s reserves their weakest score. That downgrade came after the company increased its holdings in risky assets like Bitcoin and gold. Paolo responded by saying, “We wear your loathing with pride.”
Since 2020, Tether has become one of the biggest buyers of U.S. Treasuries and recently made huge bets in the gold market. Those trades have made the company a major player linking traditional finance and crypto.
Profits dropped by about 25% in 2025, which Paolo blamed on the drop in Bitcoin prices. He said Tether still made between $8 billion and $10 billion on gold trades after the metal surged.
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