Tether is reviewing its $20 billion financing plans.

Tether's Financing Goals Narrow

Tether has reconsidered its financing plans worth $20 billion following an unexpected reaction from investors. The company's targeted valuation could have reached approximately $500 billion. However, potential investors are hesitant about this valuation.

New Plan: A Smaller Financing

In light of recent developments, Tether has begun negotiations to secure a smaller financing of approximately $5 billion. Investors are questioning both the size of this deal and Tether's valuation by comparing it to other firms such as SpaceX and ByteDance.

Regulatory Risks and Transparency Concerns

Investors are cautious due to ongoing regulatory risks related to Tether and the transparency debates surrounding the company's reserves. Nevertheless, Tether reports that it has generated approximately $10 billion in annual profit and is growing its role in U.S. Treasuries and gold.