Overview
- The company said it stopped an off-market sale by an existing holder and warned that bypassing its process would be “imprudent” and “reckless.”
- Sources say at least one investor tried to sell more than $1 billion of stock at an implied valuation near $280 billion, far below the target.
- Tether is seeking up to $20 billion in new capital at about a $500 billion valuation, with roughly 3% of equity offered, according to reports.
- Management is not permitting secondary sales into the raise and is evaluating post-deal liquidity options such as buybacks and potential equity tokenization via its Hadron unit.
- An IPO remains off the table for now, and some holders, including Blockchain Capital, have postponed sales while the private placement is arranged.