Tether Cuts $15 Billion Fundraising Plan After Investor Pushback

Tether cuts its $15–$20B fundraising plan after investor pushback on a $500B valuation, shifts to smaller targets, and strengthens reserves.

Areeba Rashid
February 5, 2026
12:13 am

Areeba Rashid

Areeba Rashid is a dedicated crypto news writer with a passion for making complex topics accessible to everyone. She covers the latest developments in the crypto world, including in-depth price analysis, helping readers stay informed and make sense of market trends.

Tether cuts fundraising plans as investors resist the previously discussed $500B valuation.
Advisers explore a smaller raise near $5B after insider hesitation and valuation concerns.
USDT keeps its market lead as Tether expands reserves with Treasuries, Bitcoin, and gold holdings.

Tether reduced its fundraising targets after investors pushed back against a previously discussed valuation of $500 billion. The issuer of the USDT stablecoin had explored raising between $15 billion and $20 billion for a 3% stake. The company adjusted its plans as investors showed caution toward the proposed valuation.

According to a report, Tether CEO Paolo Ardoino addressed the matter. He said the widely circulated valuation figure was a misconception. He clarified that the figure represented the highest amount the company was willing to sell. He added that it was not the valuation goal.

Revised Fundraising Plan and Rising Profit Outlook

Advisers are now considering a smaller fundraising round. The revised plan could involve raising as little as $5 billion. The shift followed investor hesitation around buying a stake at the earlier valuation level. Insiders also chose not to sell shares during these early discussions.

Ardoino highlighted the company’s recent profits. He said Tether made more than $10 billion in profit during 2025. He added that 2026 profits are expected to surpass that amount. He also pointed to 2024 results, when profits exceeded $13 billion.

Tether is working to strengthen its position in the stablecoin market. USDT remains the most widely used stablecoin in the crypto ecosystem. Circulating supply has reached nearly 186 billion. The company continues discussions with strategic investors, including major financial firms.

Tether has also taken steps to maintain control of its fundraising structure. The company restricted shareholders from selling their stakes on open markets.

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A spokesperson told Bloomberg that any attempt to bypass the established process would be reckless. The firm said the restrictions are designed to keep the process orderly.

Tether Expands Reserve Holdings

The company is also considering its options for providing liquidity to its investors after the fundraising process. The options include the repurchase of shares. The other option involves the ability of the company’s shares to be converted into digital tokens. The tokens can then be recorded on a blockchain.

Tether continues to add to its reserves. The company holds $141.6 billion in treasury bonds issued by the United States government as of 2025. The company also holds short-term treasury securities.

In addition, the company holds $8.4 billion worth of Bitcoin and $17.4 billion worth of gold. The company continues to make significant purchases of gold on a monthly basis.

The company stated that these moves to add to its reserves have positively impacted the stability of its stablecoin, USDT. The stablecoin remains the most dominant digital dollar in circulation.

DefiLlama data shows that USDT holds more than 60% of the total stablecoin market. Investor sentiment, not financial necessity, prompted Tether to change its fundraising strategy.