X @Bankless

Valuation and Fundraising - Tether is reportedly seeking to raise $15B to $20B from private investors for a 3% stake, potentially valuing the company above $500B [1] - Tether's CEO confirmed the rumors, stating the funds will support expansion in stablecoins, AI, commodity trading, energy, communications, and media [2] - Circle's IPO target was $4B to $5B, with shares reaching a $20B valuation on listing day [2] - An estimated valuation for Tether is $133B, based on Circle's market cap adjusted by Tether's stablecoin supply and revenue share [4] - A $100B valuation for Tether is supported by comparables, but $500B is harder to justify [6] Financial Performance - Circle's Q2 2025 audit reported $12B in gross interest income from stablecoin reserves, suggesting Tether's reserve income was around $27B for the first half of 2025, or $55B annualized [3] - Tether reported $26B in gains on gold and bitcoin and $31B in recurrent profit for the same period, yielding $114B in annualized profits [4] - Tether earns twice as much per dollar of reserves compared to Circle, due to lower compliance costs and regulatory arbitrage [4][5] Market Position and Strategy - Tether is the world's top stablecoin issuer with over $170B in USDT reserves [1] - Tether's $500B valuation aims to surpass leading crypto firms like Coinbase and Circle, trailing only Bitcoin [2] - Tether's CEO claims 99% profit margins and views Tether as a transformative company with vast potential in financial services and digital assets [5]