Crypto giant Tether is reportedly encountering resistance in its latest fundraising efforts, prompting a significant rethink of how much capital it plans to raise.
Shareholder Hesitation Slows Tether FundraiseThe revised target marks a sharp shift from earlier talks last year, when Tether was said to be exploring a raise of between $15 billion and $20 billion.
Chief Executive Officer Paolo Ardoino pushed back on the notion that the company was aiming to raise funds at a $500 billion valuation, describing that figure as a misunderstanding.
In particular, some existing shareholders have been reluctant to sell equity, complicating efforts to structure a larger fundraising round and contributing to the decision by advisers to explore a more modest raise.
At the time, those discussions were driven by worries that certain investors selling their stakes could undermine the company’s broader fundraising plans.
Tether later confirmed it had blocked at least one shareholder from proceeding with plans to divest, calling it “imprudent” for any investor to attempt to sidestep formal processes overseen by leading global investment banks.
Profits And Reserves While Rolling Out USA₮Tether has also continued to diversify its reserves. Recent filings and public statements indicate that the firm purchased roughly 27 metric tons of gold in the final quarter of the year.
Featured image from OpenArt, chart from TradingView.com
