Bloomberg reports that Tether is considering raising up to $20 billion through a stock sale and tokenizing its shares. The company, which previously intervened to prevent some existing shareholders from selling shares at low prices, is exploring ways to ensure investor liquidity and maintain its valuation at $500 billion.
Tether is seeking $20 billion in funding, with SoftBank and Ark potentially investing.
In late September, reports surfaced that Tether, the world's largest issuer of stablecoins, was in talks with investors to raise up to $20 billion, with SoftBank and Ark Investment Management among the potential investors in this major funding round. The backing of these two investment giants could help Tether drive growth and gain more mainstream recognition in the technology and finance sectors.
The advisor for this financing deal was Cantor Fitzgerald, a New York-based investment bank previously headed by U.S. Commerce Secretary Howard Lutnick. The firm also manages Tether's assets and has a long-standing and stable partnership with Tether.
Tokyo-based SoftBank Group, led by founder Masayoshi Son, is known for its bold technology investments. The company is also betting on growth in data centers, autonomous vehicles, and semiconductors, and has a deep partnership with OpenAI.
Ark, led by Cathie Wood, has invested in Circle, a competitor of Tether, through its IPO.
Tether is preventing existing shareholders from selling shares at a low price, targeting a valuation of $500 billion.
According to sources familiar with the matter, Tether intervened to block a plan by at least one existing shareholder to sell shares at a price far below the company's $500 billion valuation.
Tether did not disclose the identities of the investors who attempted to sell their shares, but stated clearly:
"It is unwise and reckless for any investor to attempt to bypass the established processes led by top global investment banks or to transact with parties not authorized by Tether's management."
Sources familiar with the matter revealed that Tether management is concerned that selling by existing investors could impact its massive funding round. Another source indicated that the company currently has no plans to allow existing shareholders to sell shares in this major funding round.
Tether's top management is considering various options, including stock buybacks and storing the company's shares digitally on the blockchain after a transaction is completed through tokenization.
This article, titled "Tether Prohibits Shareholders from Selling Shares at Low Prices and Considers Tokenizing Its Stocks with a Target Valuation of 500 Billion Magnesium," first appeared on ABMedia, a ABMedia .
