Tether Targets $500 Billion Valuation in Landmark Funding Push

According to Bloomberg, Tether plans to raise $20 billion in funding, valuing the crypto company at $500 billion. Is Tether the deal of the decade?

Exciting times for Tether: A Bloomberg report revealed thatthe crypto company sees itself financially on par with the aerospace company SpaceX and the AI ​​pioneer OpenAI. Bloomberg learned that Tether is seeking a valuation of an astounding $500 billion in an upcoming funding round. Based on this valuation, the crypto company plans to raise $20 billion for a three percent stake.

Tether stablecoin USDT was the foundation of the company’s success

Tether is best known for its stablecoin USDT, which has now reached a market capitalization of $186 billion. The seemingly boring business of stablecoins is highly profitable for the company, with profits this year expected to be well over $10 billion. According to the report, the funding round is intended as a prelude to plans to tokenize shares of Tether, making them tradable. However, an IPO remains only a very vague possibility.

Tether’s leadership, headed by CEO Paolo Ardoino, was apparently alarmed by an early investor’s attempt to sell company shares without prior consultation. The proposed valuation was reportedly $280 billion, which Tether considers far too low. The maneuver was called off, as confirmed by a spokesperson.

USDT has become a cash cow for Tether because the stablecoin is backed by over $100 billion in US Treasury bonds, which generate interest payments. If Tether’s projections come to fruition, a valuation of $500 billion would propel it into a realm previously reserved for investments in artificial intelligence and commercial space exploration.

Tether wants to take over Juventus Turin – but is rebuffed

Tether also made headlines elsewhere. A binding takeover bid was submitted to the traditional club Juventus Turin, proposing an additional investment of €1 billion. Tether CEO Ardoino describes himself as a Juve fan since childhood. Tether had already announced a strategic stake in Juventus Turin in February and now holds just over 10 percent of the shares.

However, the planned takeover has failed, at least for now, as Exor, Juventus’ majority shareholder, rejected it succinctly in a statement . Exor is the investment company of the Italian Agnelli family (owners of, among other things, the car manufacturer Fiat) and has been closely associated with Juventus Turin for more than 100 years. Currently, the Agnellis hold just over 65 percent of Juventus Turin’s shares through Exor, and according to the statement, a sale is out of the question.

Conclusion: Tether through USDT is on the financial fast track

Apple is currently valued at well over $4 trillion on the stock market, surpassed only by Nvidia with $4.2 trillion. In this context, the $500 billion valuation Tether is aiming for would be a significant statement. The crypto company Circle, with its stablecoin USDC, is considered Tether’s main competitor and achieved a valuation of around $20 billion at its IPO in June.

Tether now intends to raise a similar sum through a “small” funding round, thereby setting a new standard – anyone who still believes stablecoins are a niche product of the crypto industry needs to reconsider.

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(Featured image by DrawKit illustrations via Unsplash)

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