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- Tether is reportedly exploring a massive funding round of up to $20 billion with Cantor Fitzgerald as advisor.
- The company aims to expand beyond stablecoins into AI, energy, media, and other industries through this strategic raise.
Stablecoin giant Tether is back in the spotlight after rumors circulated that the company is preparing to raise up to $20 billion.
According to Bloomberg, the targeted valuation is around $500 billion, a figure that would put Tether on par with other giant private tech companies.
Paolo Ardoino Confirms Expansion Plans Beyond Stablecoins
This rumor originated from internal discussions and leaks from parties involved in the due diligence process, while Cantor Fitzgerald is said to be assisting as a lead advisor. If confirmed, this move could be one of the largest funding rounds in the crypto sector.
However, this news is still in its early stages. There are no official details regarding the size of the shares to be offered, although several sources have stated that investors could receive around a 3% ownership stake.
Tether CEO, Paolo Ardoino, did not deny the rumors. He emphasized that the company is indeed evaluating opportunities to collaborate with specific investor groups to expand its business.
Their focus is not only on stablecoins, but also on new sectors ranging from artificial intelligence, energy, media, and distribution.
Tether Balances USAT Launch Plans With Ongoing Transparency Issues
On the other hand, not everyone internally agrees. Bo Hines, who now heads the US stablecoin division, USAT, stated that the company has no official plans for additional funding. While seemingly contradictory, this statement actually indicates that Tether is in a crucial transition phase.
Previously, CNF reported in mid-September that Tether had launched the USAT stablecoin in the United States. This token is issued by Anchorage Digital Bank and complies with new regulations introduced through the GENIUS Act. The presence of Hines, a former White House official, signals that Tether is looking to strengthen its position in the highly regulated US market.
Furthermore, it’s worth noting that Tether’s dominance in the stablecoin market is undeniable. USDT’s capitalization is now in the range of $170–$180 billion, making it the most popular instrument in the stablecoin category.
The company’s primary revenue comes from interest income from reserves, primarily through US government securities and money market instruments. However, criticism regarding reserve transparency remains a persistent issue. Some consider a half-trillion-dollar valuation too ambitious if this long-standing issue remains unresolved.
Furthermore, Tether continues to expand its business portfolio into the energy sector. As we previously highlighted, the company partnered with Adecoagro in Brazil in early July. The project utilizes excess renewable energy from biomass and bioenergy to mine Bitcoin.
This move not only aims to optimize energy use but also opens up opportunities for revenue diversification. Equally interesting, Tether plans to release open-source Bitcoin mining software that can be widely used.
