[Bitcoin Now] "Tether in Talks to Raise 20 Billion Dollars in Investment"

If Investment Succeeds,
Tether’s Valuation Could Reach Up to $500 Billion

Bloomberg News reported on September 23 (local time) that Tether Holdings, the world's largest stablecoin issuer, is in talks to raise up to 20 billion dollars (approximately 28 trillion won) in investment.

According to sources familiar with the matter, Tether is in the early stages of negotiations to issue new shares equivalent to about 3% of its equity and sell them through a private placement for 15 billion to 20 billion dollars.

Investment firm Cantor Fitzgerald is reportedly acting as the lead manager. If Tether succeeds in raising the funds, its corporate value is expected to reach up to 500 billion dollars (about 700 trillion won), a scale comparable to that of OpenAI, the developer of ChatGPT, and SpaceX, led by CEO Elon Musk.

On September 23, the market capitalization of Circle Internet Group, Tether's largest competitor and a publicly listed company, stood at 30 billion dollars.

However, another source stated that this amount is a ceiling, and the final figure could be much lower.

The market capitalization of Tether (USDT), the stablecoin, currently stands at 172 billion dollars, more than double that of Circle’s USD Coin (USDC), which is valued at 74 billion dollars.

Tether has generated massive profits by depositing its stablecoin reserves in cash-equivalent assets such as U.S. Treasury bonds and earning interest.

According to a blog post published by Tether in July, the company recorded a profit of 4.9 billion dollars (about 6.8 trillion won) in the second quarter. Recently, CEO Paolo Ardoino stated that Tether's profit margin has reached 99%.