Tether Scales Back $20 Billion Fundraising Ambition Amid Crypto Market Downturn
- Why Did Tether Abandon Its $20 Billion Fundraising Goal?
- How Profitable Is Tether Really?
- Will Tether Still Hit a $500 Billion Valuation?
- What’s Next for Tether?
- FAQs About Tether’s Strategy Shift
Tether, the dominant player in the stablecoin market, has walked back its ambitious plan to raise $20 billion, citing market volatility and declining profits in 2025. CEO Paolo Ardoino clarified that the figure was a "ceiling, not a target," as the company pivots toward gold reserves and adjusts to a prolonged bear market. This article unpacks Tether’s strategic shift, its profitability paradox, and the broader implications for the crypto industry.
Why Did Tether Abandon Its $20 Billion Fundraising Goal?
In a candid interview with the, Tether’s CEO Paolo Ardoino revealed that the company’s earlier $20 billion fundraising target—aimed at a $500 billion valuation—was more of a theoretical cap than a concrete plan. "That number isn’t our goal. It’s the maximum we’d consider selling," Ardoino stated, adding that Tether would be "just as happy" to raise nothing at all. The backtrack follows a brutal crypto winter in 2025, where Bitcoin’s price collapse dragged down Tether’s profits. Advisors now suggest a modest $5 billion raise, but even that faces skepticism from existing investors reluctant to dilute their stakes.
How Profitable Is Tether Really?
Despite the downturn, Tether remains a cash cow. As a private company, it handpicks investors and operates with rare flexibility. "We generate billions in profits—unlike AI firms burning cash for hype," Ardoino quipped, taking a swipe at tech rivals. Data from CoinMarketCap shows Tether’s USDT still commands 68% of the stablecoin market, but 2025 profits dipped sharply due to Bitcoin’s slump. The company’s pivot to gold (hoarding it at a "frantic pace," per Ardoino) hints at a hedge against crypto’s volatility. "We’re becoming the central bank of gold," he boasted in a recent interview.
Will Tether Still Hit a $500 Billion Valuation?
Analysts at BTCC argue the target is feasible—just slower. "Stablecoins are the plumbing of crypto, and Tether owns the pipes," notes BTCC’s lead strategist. But with regulators circling and competitors like USDC gaining ground, the path may require more than just waiting for the next bull run. TradingView charts show USDT’s market cap plateauing near $90 billion, suggesting the $500 billion dream hinges on radical ecosystem expansion (think tokenized real-world assets) or a BlackRock-level institutional embrace.
What’s Next for Tether?
Three moves to watch: (1)—Tether’s bullion stockpile now rivals small nations’; (2)—the company recently hired ex-IMF lawyers; and (3)—unlike cash-strapped startups, Tether can afford patience. "We’ll grow when markets reward discipline," Ardoino told the. For traders, the lesson is clear: in crypto’s Darwinian landscape, profitability beats hype. As one veteran put it, "Tether isn’t playing the game—it’s changing the rules."
FAQs About Tether’s Strategy Shift
Why did Tether reduce its fundraising target?
Tether revised its $20 billion goal due to 2025’s crypto market crash, which slashed profits and made large-scale fundraising less urgent. CEO Ardoino emphasized the figure was always a flexible ceiling.
How does Tether compare to AI companies financially?
Unlike many AI firms operating at a loss, Tether generates billions in annual profits—a point Ardoino highlighted to critique Silicon Valley’s "growth at all costs" model.
Is gold now Tether’s priority?
Partially. While USDT remains core, Tether’s aggressive gold accumulation suggests a diversification strategy to reduce reliance on crypto-linked revenues.
