Tether's Bitcoin-Gold Reserves Power $500B Valuation, Outpacing Circle

Tether, the top stablecoin provider, is reportedly aiming to secure between $15 and $20 billion in a private placement, offering a 3% equity stake that would put the company’s valuation near $500 billion—far surpassing its main rival, publicly listed

Internet Financial, which currently holds a valuation close to $30 billion. The fundraising, with Cantor Fitzgerald acting as financial advisor, is intended to fuel Tether’s expansion into stablecoins, artificial intelligence, commodities, energy, and media, according to CEO Paolo Ardoino. At this valuation, would rank among the world’s most valuable private firms, on par with companies such as OpenAI and SpaceX.

Tether’s

, which leads the stablecoin market with a capitalization of $173 billion and a 56% market share, significantly outpaces Circle’s (valued at $74 billion, 25% share). The company’s earnings have soared, posting a net profit of $4.9 billion in Q2 2025 and maintaining a 99% profit margin, largely due to investments in U.S. Treasuries, corporate bonds, gold, and . Unlike Circle, which splits USDC revenue with Coinbase, Tether keeps all profits from its reserves, strengthening its market position.

The suggested valuation highlights Tether’s strategic move to broaden its footprint in the U.S. amid favorable crypto regulations. The company has introduced a U.S.-regulated stablecoin, USAT, which complies with the GENIUS Act, and has named former Trump administration member Bo Hines to oversee its U.S. operations. Tether also plans to invest in infrastructure and partnerships, including a $775 million investment in Rumble Inc., a conservative-leaning video platform, and collaborations with Cantor Fitzgerald and Anchorage Digital Bank for the rollout of USAT.

Circle’s share price has dropped 56% from its yearly high, as worries about Federal Reserve rate cuts potentially lowering returns on its short-term bonds persist. In comparison, Tether’s diversified holdings, which include Bitcoin and gold, are expected to perform well in a low-interest-rate environment. Analysts point out that Tether’s valuation multiple (2.7 times assets) is much higher than Circle’s (0.4 times assets), underscoring fundamental differences in their business approaches.

Although Tether has publicly denied any official fundraising plans, the opening of investor data rooms indicates the process may have started. The company’s hesitation to go public aligns with Ardoino’s emphasis on building long-term infrastructure over meeting quarterly earnings expectations. Meanwhile, the stablecoin sector is nearing a record $300 billion in total value, with Tether’s supply up 26% this year to $173 billion.