Cryptocurrency giant Tether, which created and manages the stablecoin of the same name, is negotiating to raise up to $20 billion (CZK 411.5 billion) from selected investors, i.e., outside the public market. The new investment could value the company, which is officially based in El Salvador, at around USD 500 billion. This was reported by Bloomberg, citing informed sources. A stablecoin is a type of cryptocurrency that has a stable value.
Investment and company valuation
The company wants to sell a stake of about 3% and raise USD 15-20 billion. However, these figures are the maximum target, and the final amount could be significantly lower. The company’s valuation will depend on the stake offered, the sources added. The transaction is expected to involve new capital, not the sale of shares by existing investors. However, one source cautioned that the talks are in the early stages, meaning that the final details, including the size of the offering, could change.
The investment could put Tether among the world’s largest private companies, such as SpaceX and OpenAI. OpenAI, an artificial intelligence company, was valued at $300 billion in its latest round of funding.
Tether’s strategy and expansion
Tether CEO Paolo Ardoino said in a post on social network X that the company is considering raising capital from a select group of significant investors. The funds are intended to significantly strengthen Tether’s strategy and accelerate its expansion in existing and new areas, from stablecoins and their wider use to artificial intelligence and commodity trading to energy, communications, and media.
Stablecoin tether, abbreviated USDT, is pegged to the US dollar and is the largest stablecoin in the world. According to CoinGecko, the currency’s market capitalization is approximately $173 billion. In second place is stablecoin circle, with a value of approximately $74 billion.
Source: ÄŒTK
