Tether Holdings SA, the issuer of the world’s largest stablecoin, is reportedly engaged in discussions with investors to secure up to $20 billion in new capital. Such an influx of capital could elevate the firm to the status of one of the world’s most valuable private enterprises.

Sources familiar with the negotiations indicate that Tether is pursuing between $15 billion and $20 billion in exchange for an approximately 3% equity stake through a private placement.

This would suggest a valuation nearing $500 billion, positioning the company alongside notable entities such as SpaceX and OpenAI.

Current reports suggest that the discussions are in their preliminary stages, with specifics subject to change before any agreement is finalized, as per Bloomberg’s reporting.

Cantor Fitzgerald is purportedly advising on the transaction, which is expected to involve new equity rather than a sale of shares by existing stakeholders.

The Relationship Between Tether and Bitcoin

This fundraising initiative occurs as Tether has consistently broadened its scope beyond stablecoin issuance, evolving into a more comprehensive reserve-backed financial institution.

Earlier in the year, CEO Paolo Ardoino disclosed that Tether now possesses over 100,000 BTC, valued at more than $11 billion, in addition to over 50 tons of gold as part of its reserves.

These assets position Tether as one of the largest corporate holders of Bitcoin globally, thereby linking the firm’s prospects closely with the world’s leading digital asset.

Additionally, Tether has achieved substantial profits by allocating its reserves into U.S. Treasuries and other low-risk financial instruments, recording a profit of $4.9 billion in the second quarter alone.

Ardoino has asserted that Tether functions with a profit margin of 99%—figures that, while unaudited by public market standards, underscore the company’s capacity for generating substantial revenue.

With assets exceeding 100,000 BTC and intentions to issue stablecoins directly on Bitcoin, a successful capital raise would further solidify Tether’s future alignment with Bitcoin, potentially positioning BTC as the backbone of one of the most valuable private corporations globally.

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