Tether, the powerhouse behind the world’s most dominant stablecoin, USDt, is reportedly recalibrating its financial ambitions. Following a wave of investor skepticism, the company has scaled back a massive $20 billion funding plan originally teased last fall. While the fundraising target is being trimmed, CEO Paolo Ardoino remains steadfast regarding the company’s staggering $500 billion valuation, even as critics question the math behind the figure.
Recent reports suggest that Tether’s financial advisers have recommended a more conservative approach, proposing a raise closer to $5 billion. This pivot comes at a time when the broader crypto market is under intense scrutiny regarding transparency and long-term sustainability. Ardoino, however, has characterized the initial $20 billion figure as a “misconception,” clarifying that it represented a maximum threshold rather than a hard target. He noted that the company is in a strong enough position that they would be “very happy” even if they sold no equity at all.
The Logic Behind the $500 Billion Valuation
To justify a valuation that rivals some of the world’s largest tech conglomerates, Ardoino has pointed toward the traditional tech sector—specifically Artificial Intelligence. He drew a sharp contrast between Tether’s bottom line and the “growth at all costs” model favored by AI giants like OpenAI. While AI firms command astronomical valuations despite burning through billions in cash, Tether is consistently in the black.
Ardoino’s defense is rooted in profitability. He famously quipped that AI companies are generating similar numbers to Tether, but with a “minus sign in the front.” For context, Tether reported a $10 billion profit in 2025. Although this was a 23% dip from the previous year, the company remains a cash-flow juggernaut. By Ardoino’s logic, if investors are willing to value pre-profit AI ventures at nearly a trillion dollars, a company generating eleven figures in actual profit should naturally command a premium.
Diversification and the Expansion of the Tether Ecosystem
Tether isn’t just relying on its flagship USDt to maintain its market dominance. The company is aggressively diversifying its reserve assets and its product lineup. Currently, USDt boasts a market cap of $185 billion, but Tether has also made significant strides in the commodities space. The company holds roughly 130 metric tons of physical gold, backing its $3.6 billion XAUt stablecoin.
Furthermore, Tether is navigating the evolving regulatory landscape in the United States with the launch of USAt. Developed under the GENIUS Act and issued through Anchorage Digital Bank, USAt is a stablecoin specifically tailored for the U.S. market. Though its market cap currently sits at a modest $20 million, it has already doubled in value since its debut, signaling a strategic move to capture regulated domestic market share. As Tether balances its massive valuation goals with a more pragmatic funding strategy, its shift from a “crypto-only” firm to a diversified financial powerhouse continues to unfold.
