Tether Scales Back $20 Billion Fundraising Plan Amid Investor Concerns
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 04 2026
0mins
Should l Buy CRCL?
Source: Benzinga
- Funding Plan Reduction: Tether initially aimed to raise $15 billion to $20 billion at a valuation near $500 billion, but discussions have now narrowed to about $5 billion, reflecting investor unease over valuation and regulation.
- Strong Profitability: Despite reduced external capital needs, Ardoino emphasized Tether's annual profits of approximately $10 billion, indicating the company does not require outside funding and that insiders show little interest in selling shares.
- Regulatory Pressure: Following a downgrade of Tether's reserves by S&P Global Ratings and the absence of a full independent audit, investor skepticism regarding transparency and valuation has intensified, although Ardoino argues that their profitability is comparable to leading AI firms.
- Continued Expansion: Despite scrutiny, Tether's USDT supply has reached $185 billion, and the firm has become a significant buyer of U.S. Treasuries and gold, with plans to launch a compliant U.S.-based stablecoin, demonstrating resilience in the market.
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Analyst Views on CRCL
Wall Street analysts forecast CRCL stock price to rise
17 Analyst Rating
10 Buy
4 Hold
3 Sell
Moderate Buy
Current: 56.630
Low
65.00
Averages
143.07
High
280.00
Current: 56.630
Low
65.00
Averages
143.07
High
280.00
About CRCL
Circle Internet Group, Inc. is a global financial technology company. It operates as a platform, network, and market infrastructure for stablecoin and blockchain applications and the issuer of a United States dollar-denominated stablecoin, USDC and a euro-denominated stablecoin, EURC (collectively Circle stablecoins). It provides a stablecoin network and a range of blockchain-specific software infrastructure. Its product offerings include Stablecoins, Developer Services, Integration Services, and Tokenized Funds. Developer Services develops an array of developer-ready and enterprise-grade infrastructure services that developers can plug into their own applications. It connects and integrates products, such as USDC across blockchain networks. Its Tokenized Funds are regulated yield-bearing investments for collateral use in capital markets. It also offers liquidity services, which provides institutional minting, reserving, redemption, and foreign exchange services for Circle stablecoins.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Investor Preference: For most conservative investors, USD Coin is viewed as the superior choice due to its straightforward structure and independence from individual issuers, while Ripple USD's decentralized, trust-based model, although innovative, may lead to less stability.
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- Yield Potential: Investors can generate yields on USDC holdings, particularly on decentralized finance platforms, where some, like Coinbase, offer yields as high as 10%, significantly exceeding traditional bank deposit rates.
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