Tether's $20B Raise Fuels AI, Energy Expansion to Rival Tech Giants

Tether, the company behind the world’s largest stablecoin

, is said to be in preliminary talks to secure as much as $20 billion through a private equity sale, potentially giving the firm a valuation near $500 billion. If achieved, this would place among the world’s most highly valued private companies, on par with giants like OpenAI and SpaceX. The capital raise, which would involve issuing new shares rather than selling current ones, is being managed with guidance from Cantor Fitzgerald, and interested parties have been invited to review confidential company data. The transaction could close by the end of the year, though the terms may shift depending on investor interest. CEO Paolo Ardoino has acknowledged that the company is “considering a raise” with a select group of “notable key investors” to expand its reach in stablecoins, artificial intelligence, commodities trading, and energy Tether eyes $20B raise at $500B valuation: is an IPO next? [ 1 ].

This fundraising initiative comes as Tether reports strong financials, including a net profit of $4.9 billion in Q2 2025 and $162.5 billion in reserves backing $157.1 billion in liabilities. USDT’s market cap has climbed above $173 billion, more than twice that of Circle’s

($74 billion), highlighting Tether’s leading position in the stablecoin sector Tether $20 Billion Equity Raise Nears $500B Valuation [ 2 ]. The targeted valuation is based on a 3% equity stake, though Bloomberg has reported these numbers are ambitious and may be revised during negotiations Tether Looking to Raise Upto $20B, Bringing its Valuation to … [ 3 ]. Tether’s holdings include $8.9 billion in , demonstrating a diversified reserve portfolio and the ability to earn returns from its treasury assets $USDT Issuer Tether seeks $20B at a $500B Valuation [ 4 ].

There is growing speculation about a possible Tether IPO, especially after Circle’s successful public debut earlier in 2025. Industry leaders, such as BitMEX co-founder Arthur Hayes, believe a Tether IPO could shake up the stablecoin industry due to its higher profitability compared to Circle, which shares revenue with Coinbase. Tether’s direct-to-market approach, without intermediaries, enables it to retain more value from its reserves than competitors Tether eyes $20B raise at $500B valuation: is an IPO next? [ 5 ]. However, CEO Ardoino previously dismissed IPO speculation in June 2025, saying the company currently has “no reason to go public,” indicating that these talks are still in the exploratory phase Tether eyes $20B raise at $500B valuation: is an IPO next? [ 1 ].

The capital raise also supports Tether’s broader growth strategy, including the rollout of USAT, a stablecoin aimed at the U.S. market, and the hiring of former White House crypto adviser Bo Hines to oversee regulatory affairs. These steps show Tether’s intent to seize opportunities in the U.S. and navigate regulatory developments, further distinguishing itself from rivals like Circle $USDT Issuer Tether seeks $20B at a $500B Valuation [ 4 ]. While the company’s strong profits and reserves have attracted institutional investors, some remain cautious about whether such lofty valuations can be sustained in a volatile market $USDT Issuer Tether seeks $20B at a $500B Valuation [ 6 ].

Investors are paying close attention to Tether’s reserve disclosures, profit levels, and regulatory progress, all of which will impact confidence in the deal. The ultimate structure of the fundraising—whether priced immediately or at a later date—and the participation of major institutions will be key to its outcome. While this move could further cement Tether’s dominance in the stablecoin arena, it also reflects wider trends in crypto, such as the merging of stablecoins with AI and institutional investment. As the industry continues to develop, Tether’s success in executing its expansion plans and maintaining trust in its reserves will be vital to its future valuation and influence in the market Tether Looking to Raise Upto $20B, Bringing its Valuation to … [ 7 ].