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- An analyst values Tether at $515 billion, a figure CEO Paolo Ardoino says could be conservative.
- Ardoino emphasizes Tether’s bitcoin and gold holdings are not fully factored into the valuation.
- Despite high valuation estimates, Tether’s CEO rejects the idea of taking the company public.
A recent financial analysis has placed Tether’s valuation at an astonishing $515 billion. This would rank the company as the 19th largest in the world by market capitalization. The valuation is based on a model comparing Tether to Circle, a rival stablecoin issuer that went public in June.
Circle’s share price doubled on its listing, pushing its market capitalization to over $30 billion. The analyst used forecasted earnings to arrive at Tether’s valuation. For 2025, the company’s projected EBITDA (earnings before interest, taxes, depreciation, and amortization) is $7.4 billion.
Multiplying this by Circle’s high EBITDA multiple of 69.3 gives a value for Tether of $515 billion. If that figure is in any way accurate, it would put the valuation of Tether ahead of the world’s giant brands, including Coca-Cola and Oracle, and close to companies such as Netflix and Mastercard.
Others in the cryptocurrency community believe it could go even higher. According to industry experts, USDT could someday be worth $1 trillion. Such projections further illustrate the increasing role that stablecoins and their issuers play within the digital asset ecosystem.
CEO Says Tether Thrives as Private Company
USDT CEO Paolo Ardoino did welcome the valuation but termed it “a bit bearish.” According to him, the estimate does not take into full account Tether’s reserves of bitcoin and gold, which could increase the company’s real value.
Arduino sees these assets as having essential components lacking in the financial model outlined in the analysis. Though the CEO is optimistic about the company’s future, he clearly ruled out any plans for an initial public offering.
Ardoino said that Tether is doing well as a private business, so why would it want to go public? That makes the company sound like it would rather have control and flexibility than gain access to the public markets.
Ongoing Debate on Crypto Valuation and Trust
Despite the positive reactions, some critics questioned the reliability of the valuation. The critics pointed out that Tether’s lack of transparency 1090 a high value to a company with opaque financial information, which could be dangerous.
Critics warned that the markets for stablecoins could be volatile even when tethered to hard assets if based on dubious information. Supporters countered that Tether is an entrenched player in the market, and they pointed out key differences between it and Circle, including a longer track record for Tether in safeguarding user interests.
Unlike Circle, Tether holds large reserves of bitcoin and has been proven resilient during regulatory challenges. This debate underlines the continuing fights within the cryptocurrency over valuation methods, transparency, and trust. The future growth of Tether and its market position will depend on the dynamics of these issues as well as how Tether manages its assets and its reputation.
Related Reading: Bitcoin Gains Appeal as Investors Move Away from U.S. Markets
