Tether has scaled back fundraising talks to about $5B after investors pushed back on a proposed $500B valuation.

Tether has reportedly scaled back its planned multibillion-dollar fundraising target after facing resistance from investors.

According to a report from the Financial Times on February 4, advisers for the stablecoin issuer are now examining the possibility of raising at least $5 billion, down from the $15 billion to $20 billion figure circulated during early talks in 2025.

Lower Target Follows Valuation Concerns

The original range, first reported by Bloomberg in September 2025, was linked to a valuation of roughly $500 billion, placing Tether among the world’s most valuable private companies. However, the number has reportedly proven difficult to justify for several prospective investors.

In comments cited by the FT, Paolo Ardoino, Tether’s chief executive, said the higher figure was never a firm target. According to the executive, the amount discussed was only the maximum the company would consider selling. “If we were selling zero, we would be very happy as well,” Ardoino said, noting that the firm is profitable and does not urgently need external capital.

Tether is the issuer of USDT, the world’s largest dollar-pegged stablecoin, with about $185 billion in circulation. The company has generated strong earnings from returns on reserves backing USDT, mainly U.S. Treasuries. Ardoino said Tether made around $10 billion in profit last year, a figure that has featured prominently in valuation discussions.

Despite that profitability, some investors have taken a cautious stance, with the FT reporting that concerns centered on how the $500 billion valuation was calculated and whether it reflects realistic growth expectations in the current market environment.

Nonetheless, fundraising talks are still in the early stages, and no decision has been made on the size or timing of any raise.

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Profitability, Reserves, and Lingering Skepticism

Tether’s capital plans have come against a backdrop of mixed sentiment around the stablecoin issuer. The firm has expanded beyond cash-like reserves in recent years, building large positions in Bitcoin and gold. Earlier in the year, Ardoino confirmed that the company bought about $779 million worth of Bitcoin in the fourth quarter of 2025, lifting its holdings to more than 96,000 BTC.

At the same time, scrutiny around transparency has not faded, especially considering that S&P Global Ratings assigned USDT its lowest score on the agency’s stablecoin stability scale in November 2025, citing gaps in disclosure and a higher share of assets such as Bitcoin, gold, and secured loans. Ardoino publicly criticized the rating, arguing that traditional frameworks fail to capture Tether’s business model.

The reduced fundraising target suggests Tether is adjusting to market feedback rather than pressing ahead with an aggressive valuation. Whether the company proceeds with a smaller raise or pauses altogether will likely depend on investor appetite and broader conditions in crypto markets over the coming months.

IREN Ltd., once known for mining Bitcoin, is undergoing a dramatic reinvention as an AI infrastructure provider—a transformation that will face a critical test when the company reports second-quarter earnings on Thursday.

Formerly Iris Energy, IREN has shifted away from crypto mining and into what it calls a “Neocloud” model, repurposing its stranded-energy Bitcoin sites into large-scale data centers designed to support artificial intelligence workloads.

A $9.7 billion partnership with Microsoft helped position IREN as a potential player in the race to supply next-generation compute capacity.

The ambition has not come cheap

Ahead of earnings, IREN shares have tumbled, falling nearly 19% intraday on Wednesday and down about 28% over the past five days, as investors worry that funding the company’s GPU-heavy cloud expansion could require dilutive equity issuance.

After a 314% rally over the past year, the pullback underscores growing skepticism about whether IREN can scale its AI cloud business without eroding shareholder value.

The upcoming earnings report represents a clear break from the company’s Bitcoin mining past, shifting attention to cloud execution, financing discipline, and competition with established players like Amazon and Oracle—making it a critical test of the company’s pivot.

IREN isn’t alone

Other companies have attempted comparable transformations—some successfully, others less so:

• Core Scientific – Transitioned from pure Bitcoin mining to offering high-performance computing and AI colocation services after emerging from bankruptcy, leveraging existing infrastructure to attract AI customers.
• Hut 8 – Expanded beyond crypto mining into HPC and data center services, pitching its energy assets as ideal for AI workloads.
• Northern Data – Repositioned itself as a European AI and cloud infrastructure provider, shifting investor focus from Bitcoin exposure to GPU-based compute capacity.
• Nvidia (earlier era) – While not a crypto miner, Nvidia successfully pivoted from gaming-focused GPUs to becoming the backbone of AI compute, showing how infrastructure players can redefine their identity through demand shifts.
• IBM – Moved from legacy hardware to cloud and AI services over the past decade, using partnerships and hybrid infrastructure to reinvent its growth narrative.

IREN now joins this list at a moment when AI infrastructure demand is booming—but capital markets patience is thinning. Whether it becomes a case study in smart reinvention or costly overreach may hinge on what it delivers this earnings season.

Key takeaways:

• Heavy outflows from Bitcoin exchange-traded funds and massive liquidations show that the market is purging highly leveraged buyers.

• Bitcoin options metrics reveal that pro traders are hedging for further price drops amid a tech stock sell-off.

Bitcoin (BTC) slid below $73,000 on Wednesday after briefly retesting the $79,500 level on Tuesday. This downturn mirrored a decline in the tech-heavy Nasdaq Index, driven by a weak sales outlook from chipmaker AMD (AMD US) and disappointing United States employment data. 

Traders now fear further Bitcoin price pressure as spot exchange-traded funds (ETFs) recorded over $2.9 billion in outflows across twelve trading days.

The average $243 million daily net outflow from the US-listed Bitcoin ETFs since Jan. 16 nearly coincides with Bitcoin’s rejection at $98,000 on Jan. 14. The subsequent 26% correction over three weeks triggered $3.25 billion in liquidations for leveraged long BTC futures. Unless buyers deposited additional margin, any leverage exceeding 4x has already been wiped out.

Some market participants blamed the recent crash on the lingering aftermath of the $19 billion liquidation on Oct. 10, 2025. That incident was reportedly triggered by a performance glitch in database queries at Binance exchange, resulting in delayed transfers and incorrect data feeds. The exchange admitted fault and disbursed over $283 million in compensation to affected users.

According to Haseeb Qureshi, managing partner at Dragonfly, huge liquidations at Binance “could not get filled, but liquidation engines keep firing regardless. This caused market makers to get wiped out, and they were unable to pick up the pieces.” Qureshi added that the October 2025 crash did not permanently “break the market,” but noted that market makers “will need time to recover.”

The analysis suggests that cryptocurrency exchanges’ liquidation mechanisms “are not designed to be self-stabilizing the way that TradFi mechanisms are (circuit breakers, etc.)” and instead focus solely on minimizing insolvency risks. Qureshi notes that cryptocurrencies are a “long series” of “bad things” happening, but historically, the market eventually recovers.

BTC options skew signals traders doubt $72,100 bottom

To determine if professional traders flipped bearish after the crash, one should assess BTC options markets. During periods of stress, demand for put (sell) instruments surges, pushing the delta skew metric above the 6% neutral threshold. Excess demand for downside protection typically signals a lack of confidence from bulls.

The BTC options delta skew reached 13% on Wednesday, a clear indication that professional traders are not convinced Bitcoin’s price has found a bottom at $72,100. This skepticism stems partly from fears that the tech sector could suffer from increased competition as Google (GOOG US) and AMD roll out proprietary artificial intelligence chips.

Related: Bitcoin open interest falls by $55B in 30 days–What’s next for BTC price?

Another source of discomfort for Bitcoin holders involves two unrelated and unfounded rumors. First, a $9 billion Bitcoin sale by a Galaxy Digital customer in 2025 was previously attributed to quantum computing risks. However, Alex Thorn, Galaxy’s head of research, denied those rumors in an X post on Tuesday.

The second speculation involves Binance’s solvency, which gained traction after the exchange faced technical issues that temporarily halted withdrawals on Tuesday. Current onchain metrics suggest that Bitcoin deposits at Binance remain relatively stable.

Given the current uncertainty in macroeconomic trends, many traders have opted to exit cryptocurrency markets. This shift makes it difficult to predict whether Bitcoin spot ETF outflows will continue to apply downward pressure on the price.