Tether CEO Paolo Ardoino on Wednesday said reports of a $20 billion fundraising plan were misunderstood, as investor concerns over valuation and regulation prompt the stablecoin giant to scale back discussions.

Funding Round Narrowed Threefold

Tether initially explored raising $15 billion to $20 billion at a valuation reportedly near $500 billion, but advisers are now discussing a significantly smaller round of roughly $5 billion, according to the Financial Times.

Ardoino said the larger figure was a misconception and stressed that Tether does not require external capital, citing strong profitability and a lack of interest among insiders in selling shares.

Investor hesitation has centred on the proposed valuation, regulatory uncertainty, and ongoing concerns over reserve transparency.

While Ardoino argues Tether's roughly $10 billion in annual profits justify a valuation comparable to leading AI firms, skepticism remains.

"The AI companies are making the same amount of profits we're making, except with a minus sign in the front," Ardoino told the FT.

Scrutiny has intensified following a downgrade of Tether's reserves by S&P Global Ratings and the company's continued absence of a full independent audit.

Tether Grows Despite Scrutiny

Despite investor caution, Tether continues to expand. USDT (CRYPTO: USDT) supply has reached $185 billion, and the firm has become a major buyer of U.S. Treasuries and gold.

Ardoino said momentum has been supported by progress on U.S. stablecoin legislation, Circle's (NYSE:CRCL) IPO, and Tether's plans to launch a compliant U.S.-based stablecoin.

However, he noted that the final size and terms of any capital raise remain uncertain and dependent on broader crypto market conditions.

Tether's profits declined by about 25% in 2025 compared with the prior year, which Ardoino attributed to falling Bitcoin (CRYPTO: BTC) prices.

He added that the company generated approximately $8 billion to $10 billion in gains from its gold holdings following a rally in the metal.

Image: Shutterstock