Is the world’s most profitable company per employee worth half a trillion dollars?
Tether CEO Paolo Ardoino pushed back on Wednesday against reports that the stablecoin giant has scaled back its fundraising ambitions due to investor resistance. Following a Financial Times report that Tether’s advisors had floated raising as little as $5 billion (down from an initial $15B–$20B target) because investors balked at a $500 billion valuation, Ardoino labeled the narrative a “misconception.”
📉 THE DISPUTE:
- The Report: Sources claim advisors struggled to sell the $500B valuation—which would value Tether higher than Visa, Mastercard, or JPMorgan.
- The Rebuttal: Ardoino argues the $15B–$20B figure was a “maximum hypothetical scenario,” not a target. He insists there is “significant interest” at the $500B mark and that the raise is about strategic alignment, not a desperate need for cash.
💸 THE PROFIT ENGINE: The valuation defense rests on staggering financials.
- Circulation: $187 billion worth of USDT tokens.
- Profitability: Earned ~$13.7 billion in 2024. Profits in 2026 are expected to exceed $10 billion.
- The Model: Tether effectively operates as a massive, high-yield hedge fund that pays 0% interest on its deposits (USDT holders) while earning ~4-5% on US Treasuries.
💡 ANALYST TAKEAWAY: Tether is in a league of its own. A $500 billion valuation implies a ~35-50x P/E multiple on steady earnings—aggressive for a financial firm, but perhaps justified for a global monetary network with zero customer acquisition costs and software margins. Ardoino’s point is valid: Tether doesn’t need the money. This fundraising is likely less about capital and more about buying political insurance by bringing powerful institutional investors onto the cap table.
👇 Fintech Investors: Is a $500B valuation rational for a company facing constant regulatory headwinds, or is cash flow the only metric that matters?