Tether Targets $20B Raise at Eye-Popping $500B Valuation: Bloomberg

Tether is reportedly in talks with investors to raise up to $20B at a $500B valuation, according to Bloomberg. If completed, the raise would put the stablecoin giant in the same valuation tier as SpaceX and OpenAI, and 15X the public market valuation of competitor Circle.

What’s the Scoop?

• The raise: Tether is said to be marketing a funding round that would sell roughly 3% of its equity, raising between $15B and $20B. The transaction would involve new shares only, not secondary sales from existing stakeholders.
• The valuation math: If Tether hits the top end of the range, it would be valued at $500 billion—a staggering figure for a firm with just 60 employees and virtually no public disclosures.
• Advisor and major backer: Bloomberg reports that Cantor Fitzgerald is advising on the deal. The Wall Street firm, which was previously run by Trump Commerce Secretary Howard Lutnick, is said to hold a 5% stake in Tether.
• Official denials: Despite the report, Tether’s newly formed U.S. unit said at a Seoul conference this month that it has “no plans to raise money.”
• Business boom: Tether remains the most profitable company in crypto by a wide margin. It reported $4.9 billion in net profit in Q2 alone, mostly from interest earned on its U.S. Treasuries-backed reserves.

Bankless Take:

Tether's prospective $500B valuation represents a 42x increase for Cantor Fitzgerald's 5% stake in under one year and would make Tether Chair Giancarlo Devasin the fifth-richest person in the world, with a $224B worth.