According to the Financial Times, Tether canceled its $20 billion funding round following investor backlash.
Tether, the issuer of USDT, the world’s largest stablecoin, has abandoned its plan to raise up to $20 billion in funding.
Tether, which revised its $20 billion funding plan, is now targeting a much smaller amount instead.
The initial plan, which was worth $20 billion and would have increased the company’s value to $500 billion, was revised after facing opposition from potential investors.
According to the WSJ, investors have expressed concerns about the risks of raising funds on such a large scale, citing regulatory and trust uncertainties surrounding the stablecoin business model, as well as questions about Tether’s capital structure and risk exposure.
Investors argued that the $500 billion company valuation target placed a heavy burden on the company.
The report stated that the company is currently in talks with investors for a smaller funding round of approximately $5 billion.
Tether CEO Paolo Ardoino stated that the direction of the investment round was adjusted to align with investor expectations and market conditions.
The CEO also added that Tether’s financial position is strong enough to continue operating without any investment.
The report concluded by stating that Tether’s investment discussions are still in their initial stages and the final funding amount has not yet been determined.
Tether announced last year that it had earned approximately $10 billion in profits, mostly from USDT reserve yields.
*This is not investment advice.
