Stablecoin Issuer Tether Seeks Half-Trillion Valuation In Ambitious Capital Raise

Group 1 - Tether Holdings is negotiating to raise between $15 billion and $20 billion through a private placement, potentially valuing the company near $500 billion [1][2] - The fundraising would involve new equity and is being advised by Cantor Fitzgerald [1] - A valuation close to half a trillion dollars would position Tether among the world's most valuable private companies, alongside firms like OpenAI and SpaceX [2] Group 2 - Tether issues USDT, the largest dollar-pegged token, with a market value of approximately $172 billion, while its closest competitor, Circle's USDC, is valued at around $74 billion [3] - The company reported a profit of $4.9 billion for the second quarter, with profit margins around 99% [4] - Prospective investors have been granted access to a data room to evaluate the fundraising deal, which is expected to close by year-end [4] Group 3 - Tether is preparing to return to the US market with plans for a US-regulated stablecoin, led by former White House crypto official Bo Hines [5] - The company recently announced USA₮, a dollar-backed token aimed at enhancing the US dollar's role in digital markets [6] - Tether has faced regulatory challenges in the past, including a $41 million fine in 2021 for misrepresenting reserves [7] Group 4 - A successful capital raise would provide Tether with significant resources to maintain market share and invest in infrastructure, compliance, and product development [8] - The fundraising effort will also gauge investor interest in private crypto companies amid changing interest rates and potential impacts on future earnings [8]