After particulars leaked this week of negotiations between Tether and potential traders over a $15-20 billion non-public placement, skeptics are asking why the corporate wants to lift any money in any respect.
In spite of everything, it claims to carry over $105 billion in money, cash markets, and US Treasuries in its reserves.
Based on Bloomberg, Tether is in negotiations with traders to lift funds in change for a 3% stake in Tether Holdings SA.
With this fundraise, it hopes to realize a valuation of $500 billion, a deal that if closed, would rank it alongside corporations like OpenAI and SpaceX.
Though some appropriately pointed to the backing of the corporate’s massive amount of redeemable USDT stablecoins to clarify most of that $105 billion price of money equivalents, Tether admits that it additionally owns $5.4 billion price of extra belongings exceeding the overall worth of all its issued stablecoins and tokens.
$5.4 billion in internet fairness
So, not solely does Tether disclose over $105 billion in money equivalents, it claims to personal $5.4 billion price of belongings above and past any obligations of its redeemable tokens.
Imagine it or not, the corporate additionally claims a 99% revenue margin. It reported $4.9 billion in revenue throughout its most up-to-date fiscal quarter — largely by investing its $162 billion price of reserves in Treasuries, gold, bitcoin (BTC), and numerous startups.
Ask your self why Tether may have $20B of money by way of new fairness when:
It’s “worth” $500B
It “earns”a 99% internet margin
It “earned” $4.9B final quarter alone investing “deposits” for itself
It has $172B reserves
It refuses an audit
It claims no want for an IPO (requiring an audit) pic.twitter.com/HfMaa93Rsd
— Christopher Bloomstran (@ChrisBloomstran) September 24, 2025
Hypothesis as to why Tether desires additional cash
The primary motive as to why Tether would possibly need additional cash includes the courts.
As of June 30, 2025, Tether Worldwide, S.A. de C.V. is a defendant in two civil litigation proceedings. A kind of lawsuits includes victims of Celsius who’re upset with Tether’s involvement in Alex Mashinsky’s collapsed enterprise.
Though Mashinsky is presently imprisoned at Fort Dix FCI with a 2035 launch date, victims are continuing in courtroom towards Tether by way of Celsius’ chapter property.
The swimsuit includes 39,000 or presumably as a lot as 57,428 BTC, doubtlessly price greater than $6 billion at right now’s worth.
Tether’s fault or obligations, if any, are indeterminate as of publication time.
The core of Celsius’ grievance includes a margin name dispute. Celsius victims declare Tether improperly rushed a 10-hour contractual ready interval after its margin name to liquidate Celsius’ digital belongings held as collateral, at allegedly below-average costs throughout a panic.
No audit, want money
Past any potential authorized obligations, skeptics additionally observe that Tether hasn’t performed a full audit.
For years, skeptics have questioned the standard, sources, and encumbrances of the corporate’s stablecoin reserves. Traditionally, it repeatedly promised to conduct a proper audit but by no means delivered on that promise.
As a substitute, it’s produced numerous snapshot attestations that confirm the existence of belongings in accounts — no matter the place they got here from or what its encumbrances had been in the course of the days prior and afterward.
Additional hypothesis relating to Tether’s motivations for its non-public placement embrace a guess that it anticipates a common decline in digital asset costs.
Others identified that traders would possibly merely be inquisitive about Tether’s prospects to displace its competitor Circle, or proceed rising as a non-public enterprise.
