Tether seeks billion-dollar investment and global expansion

Tether Holdings, the company behind the world’s leading stablecoin USDT, plans a significant capital increase of up to 20 billion dollars. The goal is to ascend into the top league of the world's most valuable private companies and stand on equal footing with giants like OpenAI and SpaceX. The El Salvador-based company is considering issuing approximately a 3% stake through a private placement, as reported by individuals familiar with the matter. However, these efforts are still in the early stages, and the final investment details could change due to various factors. Should the planned financial injection be successfully implemented, it would catapult Tether to remarkable heights, especially given that its closest competitor, Circle Internet Group, is valued at approximately 30 billion dollars. Notably, Tether is issuing new shares for this, and existing investors retain their shares. Indications suggest that Cantor Fitzgerald is acting as the main advisor. In a post on the platform X, Tether CEO Paolo Ardoino expressed that the company is striving to expand its business model, including new areas such as AI, commodity trading, and media. Tether is a prominent player in the field of stablecoins, which peg their values to fiat currencies. Its USDT token is tied to the US dollar and marks the top position in the crypto world with a market value of 172 billion dollars. Thanks to strategic investments in US Treasury securities and similar assets, Tether recorded a whopping 4.9 billion dollars profit in the second quarter. However, these figures are subject to different standards than the reports of publicly traded companies. After disputes with regulators and a 41 million dollar fine in 2021, Tether is aligning its strategy towards a regulated future with its return to the US market and opening chapters in collaboration with the US government under Trump. Potential investors are already examining their participation in this pioneering financing round, which is to be completed by the end of the year.