Tether May Delay Fundraising If Demand Falls Short at $500B Valuation

Tether is pressuring investors to commit to a fundraising round at a $500 billion valuation within the next two weeks, saying that it may delay the raise if demand falls short.

The El Salvador-based firm has been seeking fresh capital since late last year but has faced resistance from investors wary of the valuation, The Information reported Friday, citing unnamed sources. If commitments fall short of expectations, the company is likely to delay the raise.

The $500 billion target would place Tether among the world’s largest financial firms, exceeding every US bank except JPMorgan Chase. JPMorgan, the largest bank in the world, has a market capitalization of about $794.55 billion, while the second-largest bank in the country, Bank of America, has a market cap of $352.86 billion.

Tether’s USDt (USDT) stablecoin, the world’s largest stablecoin, currently has a market cap of $184 billion. The company’s other top products include Tether Gold (XAUt) and Tether EURt (EURt), pegged to the euro.

Related: Stablecoin supply reaches $315B in Q1 as USDC rises, USDT declines

Tether explores fundraising

In September last year, Bloomberg reported that Tether was exploring a fundraising round of up to $20 billion that could value the company at around $500 billion. The firm was considering raising $15 billion to $20 billion through a private placement for roughly a 3% stake, with Cantor Fitzgerald acting as lead adviser.

Following the report, CEO Paolo Ardoino said on X that the company was exploring a raise from a select group of investors to expand across “existing and new business lines (stablecoins, distribution ubiquity, AI, commodity trading, energy, communications, media) by several orders of magnitude.”

However, in a comment to Cointelegraph in February, Ardoino denied reports that it planned to raise up to $20 billion, saying earlier figures were hypothetical scenarios rather than an active fundraising plan. Still, he defended the $500 billion valuation, comparing the company’s profits to AI platforms such as OpenAI.

Cointelegraph reached out to Tether for comment, but did not get a response by publication.

Related: Tether says ‘Big Four‘ firm to handle first full audit of USDT reserves

Tether taps KPMG for first full audit od USDt

Meanwhile, Tether has reportedly hired KPMG to conduct its first full audit of USDt’s financial statements, with PwC assisting in preparing internal systems, according to the Financial Times. The move follows years of relying on reserve attestations from BDO Italia rather than a comprehensive audit.

A full audit would go beyond reserve snapshots to examine assets, liabilities and internal controls across Tether’s balance sheet.

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