Tether scales back $20 billion funding ambitions after investor resistance: FT

Core Viewpoint - Tether has scaled back its plans to raise up to $20 billion in capital due to investor resistance regarding its proposed valuation, which would position the company among the world's most valuable private firms [1] Group 1: Fundraising Plans - Tether initially explored a funding round that could have valued the company at approximately $500 billion, with over $185 billion in USDT stablecoin circulation [1] - Advisers have suggested raising closer to $5 billion, significantly lower than earlier discussions, as investors questioned the deal's size and valuation [2] - CEO Paolo Ardoino clarified that the $15 billion to $20 billion range was a ceiling rather than a target, indicating that the company would be satisfied with raising no capital at all [2] Group 2: Profitability and Capital Needs - Tether is already highly profitable, generating around $10 billion in profit last year primarily from interest on assets backing USDT, and has limited operational need for external capital [2] - Insiders are reportedly reluctant to sell shares, further indicating the company's strong financial position [2] Group 3: Investor Concerns - Prospective investors have expressed concerns about a valuation that would place Tether alongside companies like SpaceX and ByteDance, citing regulatory risks and questions about reserve transparency [3] - Tether has faced scrutiny regarding the quality of its reserves and the use of USDT in illicit activities, with a lack of a full audit despite quarterly attestations from BDO Italia [4] Group 4: Market Position - Tether's increasing investments in U.S. Treasuries and gold have established it as a significant bridge between traditional finance and digital assets, attracting ongoing attention despite valuation debates [6]