Tether Considers Tokenizing Stock in $20 Billion Fundraise Amid Valuation Speculation
Tether is reportedly considering tokenizing its stock as a means to provide liquidity to investors and facilitate buybacks, according to Bloomberg.
The company aims to raise about $20 billion, targeting a valuation of $500 billion. However, a shareholder reportedly attempted to sell at least $1 billion of Tether equity at a $280 billion valuation, which management feared could jeopardize the fundraising efforts.
A Tether spokesperson stated that it would be imprudent and reckless to bypass the established process or engage with unauthorized parties, emphasizing that such efforts will not proceed.
At the $280 billion valuation, Tether would be among the world’s most valuable private companies, comparable to OpenAI and SpaceX, based on data from Forge.
For context, Tether’s closest competitor Circle went public in June with a $6.9 billion valuation, and its shares dropped 2.3% to $86 on the recent Friday.
Tether’s USDT reserves are reported at about $186 billion, having increased by $46 billion over the past year per CoinGecko data, while Circle’s USDC reserves stand at approximately $78 billion.
Potential investors considering backing Tether include SoftBank and Ark Investment Management, according to a September Bloomberg report.
Decrypt reached out to Tether for comment but no response was provided in the article.
