Stablecoin Titan Tether Seeks $500 Billion Valuation on $20 Billion Raise: Report

Group 1: Company Overview - Tether Holdings is seeking to raise up to $20 billion in a private placement, potentially valuing the company at $500 billion, comparable to firms like OpenAI and SpaceX [1] - The company is based in El Salvador and aims to raise $15-$20 billion for approximately a 3% stake, although this range may be subject to change [2] - Tether has a current market cap of $172 billion, significantly higher than its competitor Circle, which has a valuation of $74 billion [5] Group 2: Market Context - The rising significance of stablecoins is attributed to a more favorable political and regulatory environment in the U.S., particularly under the Trump administration [3] - Tether plans to introduce a U.S.-specific stablecoin named USAT, which will serve different use cases than its flagship USDT [4] - The stablecoin market is becoming increasingly competitive, as evidenced by Circle's successful listing on the New York Stock Exchange, which saw its stock price nearly quadruple from its initial offer [4] Group 3: Financial Performance - In the first half of the year, Tether issued $20 billion in USDT and reported a net profit of $5.7 billion, with $4.9 billion generated in the second quarter alone [6] - Tether's investment strategy includes holdings in Bitcoin and gold, indicating a diversified asset base [6] Group 4: Investment Process - Potential investors have been granted access to a data room as they evaluate participation in the private placement, with a deal expected to close by the end of the year [6] - Investment bank Cantor Fitzgerald is acting as the lead adviser for the fundraising effort [5]