Although the deal remains in early-stage negotiations and subject to change, Tether’s proposed private placement — seeking roughly $15–20 billion by selling about a 3% stake at a targeted valuation near $500 billion — would instantly reposition the issuer among the largest privately held companies in the world. The proposed valuation places Tether alongside private giants such as SpaceX and OpenAI, and markedly above current crypto peers like Circle Internet Group, which is valued around $30 billion. Cantor Fitzgerald’s role as lead advisor, and the choice to issue new shares rather than sell existing stock, underscore a deliberate effort to raise primary capital for expansion and to avoid immediate secondary market pressures. The company’s recent financial performance provides context for investor interest, as Q2 2025 net profit reached $4.9 billion, driven largely by interest income on a reserve portfolio totaling $162.5 billion in assets. Reserves marginally exceed liabilities — approximately $157.1 billion in issued tokens — which supports the stablecoin peg and indicates operational strength, though the narrow margin warrants continued monitoring. Sustained profitability highlights effective revenue generation from reserve holdings, yet future earnings remain sensitive to macro conditions, such as shifts in U.S. interest rates that affect yield on reserve instruments. This dynamic underscores the evolving economic pressures that altcoins and stablecoins face amid broader market volatility and regulatory scrutiny related to capital gains taxes. A valuation near $500 billion would reshape private company rankings and set a new benchmark for crypto firm valuations, potentially disrupting the relative positioning of traditional technology and innovation leaders. Such a placement signals growing investor confidence in crypto infrastructure firms and their capacity to attract substantial private capital, even amid regulatory uncertainty. Institutional and strategic investors are likely targets for the placement, given its scale and the primary issuance structure, but prospective participants must weigh dilution effects that accompany new share issuance. Regulatory context and competitive dynamics add cautionary notes, since Tether operates in a comparatively lightly regulated sector while facing rising competition from other stablecoins and crypto financial service companies. Early-stage negotiations mean valuation, deal size, and terms remain fluid, and stakeholders should account for regulatory developments, market competition, and macroeconomic factors when evaluating the prospective transaction. Cantor Fitzgerald, which owns roughly 5% of Tether, would see its stake valued at about $25 billion if the deal hits the targeted valuation, highlighting significant insider exposure to the proposed valuation. The company also reported $5.7 billion in year-to-date earnings, underscoring its market dominance.
