Tether has pulled back from earlier reports of seeking a massive capital raise of $15–20 billion which would have implied a valuation around $500 billion, positioning it among the world’s most valuable private companies.
Recent reports primarily from the Financial Times, echoed by outlets like Decrypt, Reuters, and others indicate investor resistance to that lofty valuation and deal size prompted advisers to discuss a much smaller round, potentially as low as $5 billion.
Tether CEO Paolo Ardoino has downplayed the original $15–20B figure as a “misconception,” describing it as a hypothetical maximum rather than a firm target or goal. He emphasized that discussions are guided by long-term alignment rather than urgency for the largest possible raise.
This shift comes amid Tether’s strong performance but also scrutiny over its reserves, regulation, and growth strategy. USDT market cap reaching $187B. Tether’s USDT stablecoin has indeed hit a record market capitalization of around $187.3 billion as of late Q4 2025 / early 2026.
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According to Tether’s quarterly report and coverage from sources like The Block, USDT grew by about $12.4 billion in Q4 2025 alone—defying a broader crypto market downturn including an October 2025 liquidation cascade that hit total crypto cap hard.
USDT expanded its dominance while competitors like USDC saw flat or declining growth, driven by record user additions, strong reserves heavily in Treasuries and increased global adoption. As of early February 2026, USDT remains pegged near $1 with massive circulation volumes.
Tether co-founder in Epstein files
This refers to Brock Pierce (a co-founder of Tether alongside figures like Reeve Collins and Craig Sellars, though Pierce has been distanced from day-to-day operations for years). Newly unsealed U.S. Department of Justice documents related to Jeffrey Epstein (released in late January/early February 2026) mention Pierce extensively—reportedly over 1,800 times in some tallies across tranches.
The files highlight Epstein’s interactions with crypto figures, including: Pierce reportedly introducing Epstein to investment opportunities, such as a 2014 Coinbase Series C round where Epstein invested ~$3 million via an LLC, arranged partly through Pierce and Blockchain Capital.
Emails and communications showing Pierce’s connections to Epstein post-2008 conviction, including discussions of deals, meetings, and other networking in the crypto space.
These revelations have sparked renewed scrutiny of early crypto industry ties to Epstein also involving figures like Adam Back, Blockstream and Coinbase co-founder Fred Ehrsam, though no new criminal allegations against Pierce or others in the files have been reported in connection to these mentions.
Coverage from outlet like The New York Times, details these links, often framing them as part of Epstein’s broader efforts to invest in and network with tech/crypto after his conviction. These stories have been circulating widely in crypto media and on platforms like X in early February 2026.
Tether’s advisers have shifted discussions toward a much smaller raise ~$5B, after investor skepticism over the original $15–20B target which would have sold ~3–4% equity at a $500B valuation, rivaling SpaceX and OpenAI.
CEO Paolo Ardoino called the high-end figure a “misconception”—a hypothetical maximum, not a firm goal—and emphasized no urgency, with “significant interest” still at that valuation level but decisions guided by long-term alignment rather than size.Implications.
Investor caution on crypto valuations — Despite Tether’s profits and reserves, the market isn’t ready to assign mega-cap private valuations without more transparency, regulatory clarity, or proven diversification. This highlights ongoing skepticism toward opaque or high-risk crypto businesses.
Tether generates billions in profits from Treasuries/gold/Bitcoin holdings and doesn’t require external funds for operations. The retreat avoids dilution at a potentially “overhyped” price and preserves insider control.
Strategic pivot — Focus may shift to organic growth, partnerships like emerging-market wallets, or alternative capital uses like past bids like Juventus. It tempers hype around Tether going “public-like” via tokenized shares but keeps options open.