The Tether IPO (Preliminary Public Providing) chatter is up once more, this time propagated by BitMEX co-founder and former CEO Arthur Hayes.
It facilities across the stablecoin issuers’ valuation, which some say may rival famend corporations like SpaceX, OpenAI, Costco, and Coca-Cola.
Is Tether Contemplating Going Public?
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In response to Arthur Hayes, Tether going public may spell doom for Circle after the USDC stablecoin issuers’ IPO. BeInCrypto reported the success of Circle’s IPO, after the agency raised the cap for its IPO, which was initially oversubscribed 25x.
“Next up a US IPO. Bye bye Crcle,” wrote Hayes.
The comment adopted revelations that Tether seeks funding at a $500 billion valuation. Reportedly, Tether is in talks with traders to lift as a lot as $20 billion.
The deal may push the stablecoin issuer into the very best ranks of the world’s most dear non-public corporations, like OpenAI and Elon Musk’s SpaceX.
In response to Tether CEO Paolo Ardoino, the corporate is contemplating a increase from a bunch of high-profile traders. The funds achieved will reportedly be channeled towards maximizing the corporate’s technique throughout various enterprise traces.
Tether is evaluating a increase from a particular group of high-profile key traders, to maximise the dimensions of the Firm’s technique throughout all current and new enterprise traces (stablecoins, distribution ubiquity, AI, commodity buying and selling, power, communications, media) by a number of…
— Paolo Ardoino 🤖 (@paoloardoino) September 24, 2025
In the meantime, group members see Tether’s transfer as an opportunistic increase whereas their leverage and market worth are nonetheless at their peak.
“…what happens if yields fall back to 2%,” posed international macro investor Raoul Pal.
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Notably, this isn’t the primary time there was buzz a few potential Tether IPO. In June, market analysts valued the stablecoin large at $515 billion.
Jon Ma, a builder on Artemis, stated that such a valuation would make Tether the nineteenth most dear firm globally.
Regardless of the bullish projection, Ardoino clarified in June that Tether has no intention of going public, signaling confidence within the firm’s present non-public construction and trajectory.
No have to go public.
— Paolo Ardoino 🤖 (@paoloardoino) June 7, 2025
Tether’s Potential IPO In opposition to Circle’s Public Itemizing
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A dissection of Tether’s potential IPO in opposition to Circle’s public itemizing accentuates Arthur Hayes’ sentiment.
As indicated, Tether seems to be to lift $20 billion at a $500 billion valuation. As compared, Circle’s market cap is round $35 billion, making it a 14x distinction.
In the meantime, Tether’s USDT stablecoin has a market cap of $173 billion, roughly 2.3x that of Circle’s USDC ($73.6 billion).
Stablecoins by market cap dimension. Supply: DefiLlama
In the identical approach, Tether is a considerably extra worthwhile operation than Circle. That is partly because of the latter’s revenue-sharing settlement with the Coinbase trade on a big portion of its USDC.
Not like Tether’s USDT distribution in international markets, Circle has to rely closely on Coinbase to maneuver USDC at scale. This association considerably reduces Circle’s income in comparison with Tether, which doesn’t need to pay for its distribution.
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“…when evaluating an investment in a stablecoin issuer, [you have to ask yourself] how will they distribute their product?” Hayes famous in a latest weblog.
Whereas Circle made losses, Tether generated roughly $5 billion in Q2 2025. Of this, $3.1 billion was recurring (yield-based) earnings.
Excluding MTM (mark-to-market) positive factors, Tether’s $500 billion valuation is 40x final quarter’s annualized P/E (price-to-earnings) ratio. Due to this fact, there might not be an precise want for Tether to hunt a public itemizing.
“…if they did, I think the founders would look to spin off a US-regulated entity separately and keep the non-business private,” one consumer famous.
In opposition to this backdrop, the overall sentiment is that the explanation can’t be remotely associated to the necessity for more cash to generate different income streams.
All you want is $500k funding to by no means work a job once more
$500k funding x 2% monthly = $10k/month
That’s $120,000 a 12 months
With that sort of earnings you may stay an excellent life just about wherever on the planet
And a couple of% monthly is a extremely achievable purpose too
Simply work on…
— Tom (@t0mbfx) September 23, 2025
Notably, nevertheless, there stay loads of unanswered questions on Tether’s profitability and investments.
