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Tether Holdings SA, the world’s largest Stablecoin issuer, is reportedly in talks with investors to raise up to $20 billion in new capital, a deal that could push the company into the ranks of the world’s most valuable private companies.
Tether is seeking between $15 billion and $20 billion in exchange for a private placement in exchange for about 3% of the shares, according to people familiar with the discussion.
This means a valuation approaches $500 billion, putting the company in the same alliance as SpaceX and OpenAI.
According to a Bloomberg report, negotiations are still in an early stage and details may change before any deals are closed.
Cantor Fitzgerald is said to have advised on the deal, which would involve new equity rather than existing shareholders selling their shares.
The relationship between tether and Bitcoin
The fundraising campaign is because Tether steadily expanded Stablecoin’s issuance and developed itself into a broader reserve financial powerhouse.
Earlier this year, CEO Paolo Ardoino revealed that Tether now has more than 100,000 BTC (worth over $11 billion), as well as more than 50 tons of gold as part of its reserves.
The fact that these shares make LeRen one of the world’s largest corporate owners of Bitcoin connects the fate of its business with the world’s leading digital assets.
Earlier this year, the company also began minting its stable bacteria on the Bitcoin Lightning Network.
Tether announced that it will launch its stable on RGB, a next-generation protocol that can issue native Stablecoin directly on Bitcoin. The move makes the tether more Bitcoin-local, highlighting its bet on Bitcoin as the basis for everyday global currency.
The company made huge profits by investing its reserves in U.S. Treasury bonds and other cash-like tools, booking $4.9 billion in profits in the second quarter alone.
Ardoino claims Tether’s profit margin is 99%, a figure that is not reviewed by public market standards, highlighting the company’s cash generation engine.
The tether has held over 100,000 BTC and issuing stable shares directly on Bitcoin. A successful pay raise will bring it closer to Bitcoin in the future, making BTC the backbone of one of the world’s most valuable private companies.