Tether’s once-ambitious $20 billion fundraising plan has quietly shifted to a more realistic target after investors questioned its staggering $500 billion valuation.
CEO Paolo Ardoino commented, "We’re perfectly happy even if we don’t sell a single share." According to the latest financial report, Tether’s profits for 2025 have declined by about 25%.
Shift in Fundraising Strategy
Tether’s fundraising efforts began as a bold experiment in market appetite. The crypto giant, best known for issuing the USDT stablecoin, initially set its sights on raising an eye-popping $15–20 billion when it kicked off negotiations last year.
Had it succeeded at this valuation, Tether would have joined the ranks of the world’s most valuable private companies.
However, the market responded with caution. Faced with a proposed $500 billion valuation, most potential investors expressed hesitation and skepticism.
Advisors were forced to recalibrate, pivoting to a more modest plan targeting around $5 billion—a quarter of the original goal.
Valuation Controversy
Doubt over Tether’s $500 billion valuation stems from multiple comparisons and close scrutiny. Such a price tag would place Tether alongside global tech giants like OpenAI, SpaceX, and ByteDance.
CEO Paolo Ardoino has his own rationale for the valuation. He draws a contrast with hot but loss-making AI companies: "AI companies make as much profit as we do, except their numbers are negative."
In 2025, Tether generated roughly $10 billion in profits, primarily from returns on the massive reserve assets backing USDT.
Unlike tech firms still burning cash in pursuit of future growth, Tether is already a cash-rich, highly profitable powerhouse. Yet, investors remain unconvinced by this logic.
Profit Drivers
Tether’s 25% profit decline in 2025 is the result of several converging factors.
The primary driver is the overall cooling of the cryptocurrency market. As traders pulled back from high-risk assets, the market saw a significant retreat following the initial regulatory optimism after Trump’s election. As a stablecoin issuer serving as market "infrastructure," Tether was not immune.
Paolo Ardoino attributed part of the profit drop to a decline in Bitcoin prices. He also noted that the company earned $8–10 billion from its gold holdings.
Despite the dip in profits, Tether’s fundamentals remain solid. In Q4 2025, USDT’s market cap grew to $187.3 billion, with total reserves rising to $192.9 billion.
Reserve Strategy
Tether’s reserve management is increasingly taking on the characteristics of a "sovereign wealth fund." The company has become one of the most critical links between the global financial system and the crypto world.
It is now one of the largest holders of U.S. Treasuries globally, and it plays a growing role in the gold market. By the end of 2025, Tether’s gold reserves reached 127.5 metric tons.
According to a Jefferies report, by January 31, 2026, Tether’s gold reserves had climbed further to about 148 tons, valued at over $23 billion. This puts Tether among the world’s top 30 gold holders.
These figures seem to support Ardoino’s claim that Tether plans to allocate 10% to 15% of its portfolio to physical gold.
Market and Regulatory Challenges
Investor concerns go beyond valuation, centering on Tether’s longstanding regulatory and transparency issues. Since its founding in 2014, the company has faced persistent scrutiny over whether its tokens are used for illicit activities and over the transparency of its asset reserves.
Although Tether now releases quarterly reserve attestations through BDO Italia, it has never undergone a full independent audit. This lingering issue remains a major worry for investors.
At the end of 2025, S&P Global Ratings downgraded Tether’s reserve rating to the lowest tier in its system, citing the company’s increasing exposure to highly volatile assets like Bitcoin and gold.
Ardoino’s response was notably defiant: "We wear your hatred as a badge of honor."
Gate Platform Perspective: Trading Opportunities Amid Volatility
After the liquidation wave in October 2025, stablecoins and related asset classes have shown new trading dynamics. Despite heightened volatility, core stablecoins like USDT have demonstrated remarkable resilience.
Take Tether’s gold-backed token XAUT, for example. Its underlying physical gold reserves now exceed $23 billion. In times when the market seeks safe havens and stores of value, such assets often attract heightened attention.
Even during recent gold price corrections, XAUT contracts on Gate have maintained 24-hour trading volumes in the $300–500 million range, making it one of the most actively traded assets of its kind globally.
For traders, understanding the strategic shifts and fundamentals of core issuers like Tether is key to navigating asset price movements. Market volatility brings both risk and opportunity.
Conclusion
As of February 10, 2026, USDT is trading at $0.999268 on Gate, maintaining a tight peg to the U.S. dollar and continuing to serve as the "reserve currency" of global crypto markets.
While Tether adjusts its fundraising strategy, it has quietly become the seventh-largest holder of U.S. Treasuries, and its gold reserves now surpass those of countries like Australia and the UAE. In its own unique way, Tether is quietly reshaping the bridge between traditional finance and the crypto world.
