Crypto firm Tether is reconsidering the size of its upcoming funding round after investor resistance to its previously discussed $500 billion valuation, according to a report by the Financial Times. Chief Executive Paolo Ardoino reportedly played down expectations, with advisers now floating a potential raise of as little as $5 billion. This marks a sharp shift from earlier discussions last year of raising between $15 billion and $20 billion in a deal that could have valued the stablecoin giant at half a trillion dollars.
Ardoino described the earlier $500 billion figure as a “misconception,” saying it represented the maximum stake the company was prepared to sell rather than a fixed goal. He added that Tether had received strong interest at that valuation but suggested that internal hesitation to dilute ownership has slowed equity sales. The company, based in El Salvador, issues USDT, the world’s most widely used dollar-pegged stablecoin, with about $187 billion worth of tokens currently in circulation.
Previous reporting by Bloomberg News indicated Tether was seeking a minority private placement, while Reuters could not independently verify the latest FT report. Ardoino has also projected strong profitability, saying Tether’s earnings in 2026 could surpass both its estimated $10 billion profit in 2025 and $13.7 billion in 2024. The company continues to expand its role in the crypto ecosystem by offering stablecoins pegged to traditional currencies, aimed at reducing volatility and facilitating digital asset transfers.
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